YouTube Launches Paid Channels

Discussion in 'NZ Computing' started by Donchano, May 9, 2013.

  1. Donchano

    Donchano Guest


    YouTube Launches Paid Channels With 'Sesame Street,' 'Young Turks'

    Option for Dual Revenue Streams: Subscriptions and Advertising

    By:Michael Learmonth
    Published: May 09, 2013

    YouTube launched its paid channels today with 30 initial partners,
    allowing creators a business model beyond advertising. Among the first
    new channels launched today include sports, movies, music, fitness and
    children's programming. Soon, one channel will launch that has never
    had advertising: "Sesame Street."

    The initiative, an open secret in in the industry, will ultimately be
    self-serve for YouTube's more than 1 million content partners which
    will be able to elect to charge a fee starting at $0.99 a month for
    access. YouTube head of content partnerships Malik Ducard said creates
    could elect to charge subscriptions and to take advertising, but that
    would be the minority at the outset.

    "YouTube shouldn't make the call whether a paid channel has ads or
    not," he said. "The partners are smarter about their audience and
    their content than we are."

    The paid channels will be available wherever YouTube is, meaning
    computers, tablets, mobile phones and TVs. All channels will have a
    14-day free trial and the ability to pay via credit card or Google

    YouTube has been working on the launch of paid channels for months.
    The model allows some classes of content that is generally ad free -
    like children's programming - on the platform. Some channels that
    started out on cable like Cars.TV and Mark Cuban's HDNet (since
    relaunched on cable as AXS TV) are launching paid YouTube versions, as
    well as several movie channels like Big Star Movies, Screampix
    (horror) and Gravitas Movies.

    Subscriptions will add a new revenue stream for some creators, though
    few recognizable names on YouTube were part of the announcement today.
    One exception is "The Young Turks," which has a successful
    ad-supported channel with more than 800,000 subscribers. They're
    launching a paid version "with content they would not have been able
    to do without this business model," Mr. Ducard said.

    The revenue split will be similar to advertising with 55% going to the
    creator and 45% to YouTube.

    Mr. Ducard declined to say if YouTube had any expectations for the
    number of channels that would launch, or their revenue contribution to
    YouTube. "We look forward to seeing how this great community of
    creators moves ahead to reach their fan communities," he said.

    It's a big experiment with one key unknown: will anyone pay? Here's a
    taste of what's on offer, Jim Henson TV's "Fraggle Rock," UFC and "The
    Kevin Nealon Show" from Laugh Factory VIP.
    Donchano, May 9, 2013
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  2. Donchano

    Gordon Guest

    Gordon, May 10, 2013
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