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Ad-free YouTube is here, for a price

Lauren Kate Rawlins
By Lauren Kate Rawlins, ITWeb digital and innovation contributor.
Johannesburg, 22 Oct 2015
YouTube's new subscription service enables ad-free viewing.
YouTube's new subscription service enables ad-free viewing.

YouTube will soon offer ad-free content to users through a subscription-based service called YouTube Red.

The service will cost $9.99 a month and give members access to YouTube's entire video archive as well as new exclusive content - all without having to wait a few seconds to 'skip' adverts to view the videos.

"For years, YouTube's fans have been telling us they want more ? more choice when watching their favourite content, more ways to support their favourite creators and, above all, the option to watch their favourite videos uninterrupted," says Matt Leske, senior product manager.

Grant Hinds, former South African TV host and now full-time YouTuber, says YouTube Red is a good and bad thing for the platform's content creators.

Hinds has over 5 000 subscribers on his channel and two months ago passed the million views mark.

"It is bad because YouTube have changed their terms and conditions at short notice. We as creators have based our business models around YouTube's business model and now it is all different.

"YouTubers will get a cut of the $10 subscription fee, but after that no more money can be made from the viewer because they will not be seeing adverts."

However, Hinds says he doubts a lot of people will be able to afford or will be willing to pay the $10 subscription at first. "That swings in our favour as we figure out the new business model."

Copy cats

Last week, Facebook announced it would start testing its own video hub, mirroring several YouTube features.

Local YouTuber Liron Segev said then that YouTube would have to do something to differentiate itself within the video space as other social networks move in.

Today he says: "I didn't realise it would happen so quickly, but it has definitely been in the pipeline; YouTube needed to find a way to monetise further.

"It knows people are irritated by adverts so decided to launch an ad-free subscription service ? if it works is another story. I personally would not pay $10 a month, if I could skip adverts for free like I have been doing for years.

"However, if YouTube starts to change its original model, and not allow users to skip adverts after a few seconds anymore, then there may be a large uptake."

Video-on-demand competitor?

YouTube has been funding top YouTubers to create content for the site. Susanne Daniels, VP, global head of original programming, says starting next year; YouTube Red subscribers will gain access to this content. These shows and movies will not be available on any other platform.

"YouTube is taking on Netflix; they have raised a talent pool out of YouTube and turned them into modern day celebrities. Now they are using them to create original content and leverage those audiences the creators have developed over the years," says Hinds.

"YouTube Red is scary because YouTube can now create content that competes with our content. And they will probably promote their content more, which means real estate that was previously ours, will be occupied."

Some of the original movies and series include:

Scare PewDiePie: a reality-adventure series where YouTuber PewDiePie encounters terrifying situations inspired by his favourite video games.

Sing It!: a singing competition parody by Fine Brothers Entertainment.

A Trip to Unicorn Island: a full length movie about YouTuber Lilly Singh and her tour across the US.

Untitled Joey Graceffa project: a reality adventure series, hosted by Joey Graceffa featuring other YouTubers who have to solve a murder mystery.

Single by 30: a romantic drama series, by Wong Fu Productions, about two high school friends who promise to get married if they're still single at 30.

Untitled CollegeHumor project: a series about the absurdity of Internet culture by CollegeHumor.

I Am Tobuscus: a satirical comedy by YouTuber Toby Turner about an eccentric, new-age celebrity.

It is not know yet if the content will be available in South Africa.

Elsewhere soon

The membership also allows users to save videos to watch offline and play videos in the background. It extends across devices and anywhere the user signs into YouTube.

The original ad-filled YouTube will still remain.

Although only available in the US at the moment, YouTube says it is working to bring the service to other countries soon.

Viewers in the US are able to try YouTube Red free for a month starting Wednesday, 28 October.

According to YouTube statistics, more than a billion people worldwide make use of the video platform, 300 hours of video are uploaded every minute, and the number of hours people spend on YouTube each month goes up by 50% every year.

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