Are You Ready To Pay For YouTube Content?
Are consumers really ready to pay for YouTube content? YouTube is transitioning from a platform to a full fledge producer. Are they trying to reinvent TV? Looks like it. Could YouTube become the next internet giant? It seems they are experimenting with the idea. Back in October, YouTube announced an investment of millions in original content production of over 60 individually selected channels on its video platform, and they will charge subscription fees to viewers – like cable television. Reports show that the initial paid channels will cost $1 – $5 a month for episodic content and will debut in the Spring.
Why would YouTube enter this market? With the percentage of people using tablets and smart phones as the primary means of viewing multimedia content and Hulu now offering their own original content programming why wouldn’t they. Google, YouTube’s parent company has said it wanted to explore non-advertising revenue to generate profit. They will also consider charging for content libraries, access to live events, pay-per-view, and self-help/financial advice shows.
As for YouTube partners (vloggers) the subscription fees affects them too. YouTube is advising its current partners to consider carefully how their existing audience will react. Most have spent years building up a base of free subscribers through hard work and cross-promotion. Can they produce content worth paying for?
Nevertheless, YouTube has to get people to view their content like they watch TV. That is more difficult. How do you get people to watch a 30-60 minute programming daily/weekly, rather than a 5 minute video clips and clicks?
“But how does YouTube go from upload center to the engine that powers the video-curated web? For that, Dror looked to today’s TV formats for a clue. And what he found may surprise you. If you think about TV shows like ESPN Sportscenter, that’s essentially what these formats are. Clip shows. They have some hosts, talk for a few minutes and then they go to some content that they didn’t create but are pulling from other sources. Now we’re making that format available on YouTube. Anyone can use the giant library of video content and start to create these hosted Programs.” (www.forbes.com)
Would you pay for YouTube content?