YouTube planning to offer subscription based ad-free service

YouTube planning to offer subscription based ad-free service

Google’s video sharing platform YouTube is planning to launch advertising-free subscription based service in the second half of current year. YouTube allows people to share and watch videos posted on its website. The service adds video advertisements at the start of the video and also in between the video in case of longer videos.

The ads free version of YouTube will come at a monthly fee but Google has not given any indication of monthly charges.

In a letter sent to YouTube partners, Google said, "By creating a new paid offering, we'll generate a new source of revenue that will supplement your fast growing advertising service.” Google will also offer a share in the revenue to YouTube Creators. Google will offer 55 percent of subscription fee to YouTube Creators.

The updated YouTube Partner Program Terms said, “If your Content is included in and viewed by a user in multiple subscription offerings, YouTube will pay you based on the subscription offering with the highest amount of net revenues recognized by YouTube, as calculated by YouTube.”

In October 2014, YouTube head Susan Wojcicki indicated that YouTube is looking at additional monetization options. Google incurs massive expense for bandwidth and storage space for its video network.

In paid subscription model, Netflix, Hulu and HBO NOW will be direct competitors for YouTube. Netflix costs $8-12 per month and currently serves 57.4 million paid subscribers.

Google has updated the terms for Creator Studio Dashboard to reflect the changes in its policy.

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