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YouTube considering subscription fees

By Stuart Turton

Posted on 16 Dec 2009 at 08:15

YouTube is considering a subscription service, as it attempts to woo reluctant television broadcasters and film studios online.

A number of broadcasters - including Channel 4 - have already signed deals with YouTube to make full-length episodes of series such as Skins available shortly after broadcast.

The broadcaster and video service then split any ad revenue generated by the content. However, YouTube has admitted that many content providers are reluctant to put their programming online without guaranteed compensation.

"We're making some interesting bets on long-form content; not all content is accessible to us with the advertising model," Google's vice president of content partnerships, David Eun, told Reuters.

We're making some interesting bets on long-form content; not all content is accessible to us with the advertising model

According to Eun, the streaming service is currently mulling two different options: a monthly subscription fee, or a rental system similar to that employed by Apple.

The service claims to have already held talks with studios including Lions Gate Entertainment, Sony Pictures, and Warner Bros about the latter option.

However, Eun was keen to play down suggestions that charging customers for content meant that its advertising-based business model had failed. Indeed, he claims that content partners will start making significant returns in 2010.

"If we just continued to focus on our advertising model that would be enough opportunity to create meaningful revenue," says Eun.

"The biggest opportunity today is advertising and we've just begun to scratch the surface," he adds.

The move to subscriptions could help YouTube fend off services such as the wildly successful Hulu, which screens full-length television shows including House for free, supported by 30 second ads. The service is widely tipped to arrive in the UK during 2010.

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User comments

I see no problem

For susbcription to premimum content.

Certainly to watch TV on my iPod, laptop or TV when I want and to watch what I choose, is worth paying for.

By cheysuli on 16 Dec 2009

A new service

I think it is a problem. The service of You Tube has been running successfully for a long time now, but if they start to charge users for content there will be a lot of users not using Youtube as their first option for a video service. Another site will appear and offer what YouTube currently offers, with just ads supported video content and Youtube will lose it's stranglehold on the market.
Personally I think it's a bad idea. I wouldn't pay for this content, and would just end up not visiting the site. I know others would also share this opinion. Of course millions would subscribe too. In a bad ecomony I don't think it's a good idea to charge users for content that they can live without.

By jazzy_jeff_81 on 16 Dec 2009

____________

They can charge for premium content all they want, I certainly won't be paying for it.

By Lacrobat on 16 Dec 2009

"In a bad ecomony I don't think it's a good idea to charge users for content that they can live without."
You make sensible point, but that won't stop them and people, being what they are, will probably just knuckle-under.

By Klobba on 17 Dec 2009

It could work if they get it right

I agree with cheysuli, if they charge for full length, premium content, people will buy it if the quality of the material is high and the price is right. This would suit films and series for example.

Keep the free service too, it will promote the paid for content. This would suit shorter programmes, educational and documentary programmes and one off dramas for example.

However, they should really think hard about the subscription model(s). I'd favour a "pay as you go" model in addition to an "as much as you like for a flat monthly fee" model should be considered. As a light user of online content and someone who doesn't own a tv, I'd really like be included here.

As an example, I really enjoyed "Micro Men" on the BBC iPlayer recently and would have happily paid to watch it, perhaps about 50p for a stream or £1 to download and keep a non-DRM file.

By iclbmc1 on 17 Dec 2009

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