YouTube is prepping to launch an ad-free paid service 'YouTube Red' by the end of October, and intends to charge $10 a month.
You’ll soon be able to watch videos on YouTube without seeing annoying ads, as the company is prepping an ad-free subscription based service for the first time. Hence, users will have the option to pay for an ad-free service on YouTube for a monthly subscription tipped as ‘YouTube Red’.
To recall, YouTube mentioned the idea of a subscription-based model nearly a year ago though never committed to a specific timeline as to when it goes into effect. And now, according to an email sent out by the company to its YouTube partners, content owners will have to agree to a new set of terms by Oct.22, or else their “videos will no longer be available for public display or monetization in the United States”.
With the updated terms and conditions, YouTube will pay content owners 55 percent of the total net revenues from the subscription fees – which is the same percentage as the revenues from third party advertisers.
‘YouTube will pay you 55% of the total net revenues recognized by YouTube from subscription fees that are attributable to the monthly views or watch time of your Content as a percentage of the monthly views or watch time of all or a subset of participating content in the relevant subscription offering (as determined by YouTube),” explains YouTube in the email.
The email also says that content creators will be get guaranteed additional income beyond what’s available today through advertising, adding that the upcoming subscription model has the potential to generate ‘additional source of revenue for you’, referring to content creators.
Sources also suggest that with this new YouTube Red model, it intends to bundle two different services into a single offering – one of them being the ad-free video streaming service mentioned above. While the other is an update to its music streaming service called Music Key, which is currently available and invite-only.
Music Key subscribers will be able to watch ad-free even while they are offline, for which there’ll be a monthly fee charged from YouTube. Customers will have to pay $9.99 for the service when it officially launches.
‘You’ve asked us for ways to listen to music without ads, to keep playing music videos even if you lock the screen or start using another app, and to play music even if you’re not connected to the Internet,’ said YouTube.