The all powerful video platform that is Youtube has announced a new subscription model that will allow users to pay a fee in order to get a “Advertisement Free” experience.
This will allow people to pay a monthly fee to get a no ad video experience. No official statement as of yet on the pricing. However it’s rumored to be around $10 monthly & include other features such as offline video storage on mobile devices.
The announcement was sent out in a letter to partners in which it stated
“excite your fans and generate a previously untapped, additional source of revenue for you.”
Meaning that there’s a potential for creators to get paid off of this subscription service. More specifically the way it’ll work is a pool based system. If a user is a subscriber of this “Ad-Free Account” earnings are then based off how much time that user spends watching your videos. So partners will get paid based on views by these subscribers essentially. The cut being the traditional Youtube cut of 55% to the creator & 45% to Youtube.
This is both bad & good news for creators. First off most users nowadays may use something like “Ad-Block” as is to prevent advertisements in content. From a creators perspective I understand the need to make & monetize content to earn a living. The DigitalDojos channel in itself is in the process of ridding of adverts based in the video in place for custom burned in pre-roll ads from sponsors I choose however this is also something thats being phased out by Youtube. I like the idea of subscription accounts for those who use the service enough & get a great benefit from it to get ad-free as well as other things like offline access. However this will really benefit the major partner channels out there that hold majority of the views in their space. Not so much the lower/middle end partners. Not to mention the cut is pretty much half of the earnings.
Many services outside of Youtube have started to form to offer creators more control over their content as well as earnings & percentage of ad revenues which could force Youtube to change some policies. At the end of the day YouTube is the platform to be for video & thus the reason we have to apply by these changes like it or not for creators like myself.
If anything I’d like Youtube to fix the subscription service on all free accounts before rolling out a paid one.