One of the biggest draws of online video giant YouTube is that all of the content on the website is free to watch. Seeing the potential revenue that it’s missing out on, YouTube has started working to capitalize on the success of its users. First came advertisements that showed up before videos. While they may have been an inconvenience for users, the content was still free, and most ads could be canceled after five seconds of run time. Now however, for the first time, YouTube is going to offer creators the opportunity to charge for their content. The following excerpt from Time.com explains how it works:
“Now any video creator who has 10,000 subscribers and has been verified by YouTube will be able to set up a new paid channel and charge a fee for access to their content. Creators can set their own subscription rates, though YouTube has final authority to determine pricing. Every paid channel will offer an initial 14-day free trial.”
Though YouTube hasn’t confirmed the revenue split between YouTube and creators for these channels, it is believed to be 55-45 split between creators and YouTube respectively. The minimum monthly subscription fee is $0.99. YouTube first offered paid subscription channels to a limited number of creators earlier this year as a trial run, but now is the first time the option will be able to all creators, or at least, those with more than 10,000 subscribers. YouTube hasn’t commented on how users have reacted to the paid channels, but creators have said the response has been “tepid.” How this will play out remains to be seen, but it’s safe to say that paid subscription channels could have a profound effect on the website’s future.
TalkingTree Creative initially began as a music production company over 25 years ago. Now we produce everything from original videos to live events and entertainment. We communicate client stories in captivating, creative ways. We match our storytelling skills with high production values so the finished piece is clean, professional, and exciting. We make sure that the feelings and experience that attendees take away from the media is a positive one.
Follow TalkingTree Creative on Facebook, Twitter, Google+, and LinkedIn to stay up to date with our latest projects. Get a dose of visual inspiration by checking us out on YouTube and Pinterest as well.