YouTube: This was bound to happen sooner or later...

58 replies
Looks like YouTube is introducing a paid subscriptions model. Good news for some, not so good news for others. Read the full story here (not an affiliate link) YouTube Set to Introduce Paid Subscriptions This Spring | Digital - Advertising Age
#bound #happen #sooner #youtube
  • Profile picture of the author sbucciarel
    Banned
    That's interesting. Introducing paid channels that people have to pay to watch. Don't know how that'll go over. I have a TV and can't see paying to see YouTube videos, but maybe some people will.
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  • Profile picture of the author abbe77
    This is the way of all online businesses for decades... Look around you Google, Facebook and now Youtube. Do we still believe that those are FREE SERVICES ?
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    • Profile picture of the author Fraggler
      Originally Posted by abbe77 View Post

      This is the way of all online businesses for decades... Look around you Google, Facebook and now Youtube. Do we still believe that those are FREE SERVICES ?
      YouTube is jus the delivery method. The shows are the product. This willattract interest from production companies who didn't see YouTube as a viable option due to lack of monetary gain.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by abbe77 View Post

      This is the way of all online businesses for decades... Look around you Google, Facebook and now Youtube. Do we still believe that those are FREE SERVICES ?
      It depends what you mean by "free services".

      There's "free at the point of consumption of the service offered" (the everyday definition commonly assumed by most people, according to which they are free). And then there's "non-monetized", which is the meaning you're using when you suggest that Google etc. are "not free". Not what most people mean by "free", though, I think?
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  • Profile picture of the author Fraggler
    I can see that working really well. On-demand TV is the way of the future and if some of the large channels see it as an opportunity to break away from traditional TV channel watching then I think it'll do well.

    People will pay for a quality product and entertainment is no different. What I hear many saying is they hate having to pay for things they never watch.
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  • Profile picture of the author WillR
    The problem is all this content has been free up until now.

    It's like trying to ban alcohol in a country where it has previously been permitted.

    I don't see this taking off... but I may be wrong.

    I think it will depend heavily on which content is being sold.
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    • Profile picture of the author Fraggler
      Originally Posted by WillR View Post


      I think it will depend heavily on which content is being sold.
      Of course. They aren't making you pay to access YouTube. They are letting some channels make money from it - if they want to.
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      • Profile picture of the author WillR
        Originally Posted by Fraggler View Post

        Of course. They aren't making you pay to access YouTube. They are letting some channels make money from it - if they want to.
        Understood.

        But if it's a whole lot of content that has been available around the traps for free then people won't pay for it.
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        • Profile picture of the author J Bold
          Originally Posted by WillR View Post

          Understood.

          But if it's a whole lot of content that has been available around the traps for free then people won't pay for it.

          That's not at all what I picked up from the article.

          I'm sure most videos on youtube will still be free. They are just trying to expand their model to include smaller budget but high quality "shows" which people have to pay for to watch.

          You can already pay to watch Hollywood movies on youtube. So they are already dealing with paid content.

          I see this as an extension of that kind of model. It's not replacing all the free videos that everyone can upload if they wish, it's in addition to that.
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        • Profile picture of the author Marty S
          Originally Posted by WillR View Post

          Understood.
          But if it's a whole lot of content that has been available around the traps for free then people won't pay for it.
          Yeah. This is not going to be the content everyone here is thinking about and getting for free right now. This will be made-for-Youtube series/content by professional producers. Just think of this as another cable channel, but on the internet.

          I could see myself paying for certain programming, just like millions of others do via iTunes. Nothing different, but the publisher.
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    • Profile picture of the author JSProjects
      Originally Posted by WillR View Post

      The problem is all this content has been free up until now.

      It's like trying to ban alcohol in a country where it has previously been permitted.

      I don't see this taking off... but I may be wrong.

      I think it will depend heavily on which content is being sold.
      Bingo.

      And, if I'm going to pay for content, it better be REALLY good. I definitely wouldn't pay to see a bunch of internet "superstars" and their annoying overuse of jumpcuts gossip about celebs.

      I would, however, be willing to throw a few bucks at something like H+, which is pretty awesome.

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  • Profile picture of the author alistair
    There's only really a couple of tv shows I watch, Top Gear and F1. I do however watch different things on youtube but if I have to pay for anything then I'll just find something else as there's plenty of choice for free to keep my little brain entertained.
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  • Profile picture of the author talfighel
    I think that if they charge a very low one time fee then it will work out but to charge a monthly fee, a lot of people will not use them to watch videos and this will only mean that someone or some company will take advantage of this and create their own video sharing website that people can use for free.

    There are some of them already up and running.

    I hope that they don't get this approved. A lot of people will not be willing to pay for it.
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  • Profile picture of the author SunilTanna
    People pay to watch NetFlix or whatever, why wouldn't they pay for premium Youtube content?
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  • Profile picture of the author Josh Monroe
    I see this working, but not working well.

    If you look at most of the 'vloggers' and another popular category "gaming" most of the watchers there are pre-teen/early teen so charging for content is out of the question, since they have no means of paying unless they ask their parents.

    Other popular categories like "How-To" section where there are a lot of fashion/make-up gurus, I can't really see people paying for that either, unless people enjoy watching others do make-up product reviews and watching people apply make-up and so on.
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  • Profile picture of the author bluecoyotemedia
    I am waiting for the new WSO

    how to make a million dollars with youtube channel subscriptions

    I am working on this now

    hahahah
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    • Profile picture of the author JohnMcCabe
      Originally Posted by sbucciarel View Post

      That's interesting. Introducing paid channels that people have to pay to watch. Don't know how that'll go over. I have a TV and can't see paying to see YouTube videos, but maybe some people will.
      Suzanne, I have a satellite dish with over 250 channels, and there are many times I can't find something I want to watch. We DVR just about everything we watch so we can watch when we want.

      I'd gladly cut back on my satellite package and throw some of that money at YT channels if they offered what I wanted.

      Originally Posted by WillR View Post

      I think it will depend heavily on which content is being sold.
      This. I'm thinking this might be big for cult shows, series with hard core fans but not enough viewers to keep a place on a regular network, very niche topics with rabid fans but not big enough for networks, etc.

      Whether or not the idea goes mainstream on YT remains to be seen.

      Another factor no one has mentioned is the penetration YT is gaining among non-traditional users. Between smart phones, game consoles and wi-fi enabled DVD and Blu-ray players, YouTube is a viable choice for many people who wouldn't think of "watching TV" on their computers...
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      • Profile picture of the author sbucciarel
        Banned
        Originally Posted by JohnMcCabe View Post

        Suzanne, I have a satellite dish with over 250 channels, and there are many times I can't find something I want to watch. We DVR just about everything we watch so we can watch when we want.

        I'd gladly cut back on my satellite package and throw some of that money at YT channels if they offered what I wanted.
        Yeah, we got Direct TV and there's plenty of times that there's nothing but a bunch of garbage on. It will be interesting to see exactly what kind of content is going to be offered.
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  • Profile picture of the author Chri5123
    I think this is going to be worth testing out.

    Does anyone know if the paid format will be open to everyone or just companies/partners of Youtube.

    I could see add-ons for movies doing well in this format, i.e Missing scenes of a movie, bloopers
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    • Profile picture of the author Kurt
      Originally Posted by Fraggler View Post

      Of course. They aren't making you pay to access YouTube. They are letting some channels make money from it - if they want to.
      Originally Posted by kindsvater View Post

      It's a great idea where one can create YouTube Membership Sites. We'll see if they ever roll it out for the "little guys" to use.

      .
      You'd think marketers would be trying to come up with ideas, instead of telling us they won't pay.

      From what I understand, the channel owners can charge between $1 and $5 a month. I see channel owners creating a free channel, with a "premium" channel being promoted from the free channel.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by Kurt View Post

        You'd think marketers would be trying to come up with ideas, instead of telling us they won't pay.

        From what I understand, the channel owners can charge between $1 and $5 a month. I see channel owners creating a free channel, with a "premium" channel being promoted from the free channel.
        Agree with this.

        You can read a blog online for free. Or you can get it on your Kindle for a buck a month. Same content. You're paying to have the updated version synced to your convenient delivery device - in other words, convenience.

        As for the free + premium model, check out what the WWE is doing. Even if you hate pro wrestling, Vince McMahon is offering graduate level courses in marketing if you know how to read the text...
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        • Profile picture of the author Kurt
          Originally Posted by JohnMcCabe View Post

          Agree with this.

          You can read a blog online for free. Or you can get it on your Kindle for a buck a month. Same content. You're paying to have the updated version synced to your convenient delivery device - in other words, convenience.

          As for the free + premium model, check out what the WWE is doing. Even if you hate pro wrestling, Vince McMahon is offering graduate level courses in marketing if you know how to read the text...
          Dana White from the UFC does something similar. They have many fights on "regular" TV for free, but the major fights are on Pay Per View.

          I also think it can act as motivation for many to provide "payment worthy" video content.
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  • Profile picture of the author bonesaj
    think of people like jenna marbles or whatever her name is, im sure if she charged $4.95 a month she would make tons of $$$$$$$$$$$$$$$$$$$$$$$$$

    you could also make video training series and monetize it through youtube without having to get ppl to your site
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    • Profile picture of the author Kurt
      Originally Posted by bonesaj View Post

      think of people like jenna marbles or whatever her name is, im sure if she charged $4.95 a month she would make tons of $$$$$$$$$$$$$$$$$$$$$$$$$

      you could also make video training series and monetize it through youtube without having to get ppl to your site
      Part One is free, Part Two is membership.

      And it gives you a great opportunity to leverage YT's internal traffic.
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  • Profile picture of the author jsmith2482
    I'm a pretty large Youtube fitness/nutrition/supplement marketer and I'm going to test out both $1 videos and $4.95 videos for full out programs.
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  • Profile picture of the author Janice Sperry
    Singers, bands, live concerts, etc might be big. There is a ton of free stuff but it takes forever to find anything of quality. Either the audio or video or both stinks.

    Think Bieber, Swift etc... rabid fans by the 1000's would pay for premium footage, interviews etc especially if it can't be found anywhere else.
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  • Profile picture of the author Rbtmarshall
    Youtube streaming = custom cable service?

    pay for what you want, instead of being forced into a cable TV package. That could be google's next big thing.


    But usually they go half-assed into projects that look promising. Google isn't hurting for cash yet.
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  • Profile picture of the author consult4u
    This is simply a natural progression of the internet. Youtube uses more bandwith then the entire internet combined. They realize that if a few of the pay to view channels take off (which they will) Youtube gets a cut which will go a long way to making them profitable.
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    • Profile picture of the author deu12000
      I see this working.

      They've already done PPV on YouTube before for MMA events and live streaming.

      Get the latest WSO course on YouTube only $5 per month and you can learn how to make money making websites with step by step tutorials and live interaction.

      This would only be for premium content not the free stuff you see out there.

      YouTube would be the video hoster, now you can cut out Amazon S3 or having to worry about your hosting handling the video traffic, plus you can probably embed what you need if you want it on your own sites.

      I just see it as another venue, hosting platform, and membership site platform to get things going. Guaranteed once it kicks in you'll start seeing WSOs pointing to YouTube memberships.
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  • Profile picture of the author Super Money Maker
    LOL is that means we no longer able to watch YouTube until we pay?
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  • Profile picture of the author ceenote100
    At least it would start off at $1 - $5 a month. That's nothing. I don't know if they'll bump it up but I'll certainly pay for it. I love YouTube!
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  • Profile picture of the author garyisonline
    This is an optional service YouTube is offering individual channel operators, so they can get paid for more creativity - like some of the million subscriber channels that Maker Studios and Machinima manage/own etc.

    It's not a sky is falling moment where YouTube tries to steal our lunch money to watch narcissistic pre-teen rappers or overweight dogs barking 'We Wish You A Merry Christmas'.

    But rumor has it we will be charged $5/minute to watch really really bad text to speech plr crap mass produced by Internet Marketers. :rolleyes:
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    • Profile picture of the author JohnMcCabe
      Originally Posted by garyisonline View Post

      But rumor has it we will be charged $5/minute to watch really really bad text to speech plr crap mass produced by Internet Marketers. :rolleyes:
      They should be paying me $5/minute to watch that crap, and I'd still feel underpaid.

      I sat through one as a favor, and I could just feel the IQ points oozing away. Fortunately, the effects were only temporary...
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  • Profile picture of the author Isaiah Coe
    I honestly think this won't go so well for most channels.

    But it does seems like something useful for channels that make quality how to videos.

    I'm very interested in seeing how users react, once it has been applied.
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  • Profile picture of the author Malcolm Thomas
    I'm cool with it. I don't see what the problem is. Youtube IS a business so they will do what is neccessary to maixmize their profits.
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  • Profile picture of the author tomerep
    It really is good for entrepreneurs, and bad for just the viewers. a typical viewer would really say it as a bad news because its not free anymore, but nevertheless, those working in IM would love it cause it could mean more income
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    • Profile picture of the author garyisonline
      Nobody's going to pay for a subscription to watch how-to or marketing videos.

      The target is obviously going to be strictly the original content by the big house production companies, YouTube stars like Smosh, Shane Dawson, VEVO, some of Maker's people, ShayCarl, KassemG etc.

      To everything and everyone else this is a completely moot point.
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      • Profile picture of the author yukon
        Banned
        Originally Posted by garyisonline View Post

        Nobody's going to pay for a subscription to watch how-to or marketing videos.

        The target is obviously going to be strictly the original content by the big house production companies, YouTube stars like Smosh, Shane Dawson, VEVO, some of Maker's people, ShayCarl, KassemG etc.

        To everything and everyone else this is a completely moot point.

        I disagree. A premium tutorial channel/site/list could bank on paid Youtube subscriptions, doesn't have to be only the BIG boys earning money.

        The difference between the BIG boys & most other Youtube channels is quality, so focus on quality. I do think the key to making this work is to allow a preview of the paid video, unless a person already has a following on Youtube or their own site.
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        • Profile picture of the author garyisonline
          A tutorial channel won't have the subscription base to make $1 to $5/month worth more than a wide open and free flowing Adsense partnership channel.
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  • Profile picture of the author troy23
    I always expected them to do this eventually.
    When you think of the thousands of videos that are uploaded every hour it would be very difficult for them to provide the bandwidth for free forever. I'm sure it will only be highly specialized content that will be paid for.
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  • Profile picture of the author tomsyler
    this will only benefit big film producing companies...I doubt youtube will get up to 30% of their traffic..
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  • Profile picture of the author spearce000
    As I said in my OP this development could be good news for some, not so good news for others.

    From Article
    YouTube is also considering charging for content libraries and access to live events, a la pay-per-view, as well as self-help or financial advice shows.
    This is the "good news for some" part. If you have a large following, your seminar or coaching session could be streamed live over YouTube for one price, and available for online viewing for another. Forget graphics-based webinars, Skype conference calls or selling a physical CD/DVD based product afterwards. You could charge big bucks for this. You would need to have a large following to make this viable, but there are many marketing "gurus" (some of them on this forum) for whom this would not be a problem.

    I also agree with Yukon's comments above (#42).

    Originally Posted by bluecoyotemedia View Post

    I am waiting for the new WSO

    how to make a million dollars with youtube channel subscriptions

    I am working on this now

    hahahah
    I'm sure you're not alone! You laugh, but there's bound to be one.

    Originally Posted by WillR View Post

    The problem is all this content has been free up until now.

    It's like trying to ban alcohol in a country where it has previously been permitted.
    This is the "not so good news for others" part. We all know what "Big G" is like when it comes to wringing every last penny out of customers. My biggest fear is that YouTube will go the way of Spotify, with limits to the number of times you can view a video without taking out a paid subscription, and lots more intrusive advertising. I've noticed recently that the number of videos with commercials beforehand has been growing, and you can't always skip them after five seconds either!
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  • Profile picture of the author Chad Kimball
    I think a lot of these types of services are going to a "freemium" model (for instance, google plus local also looks like it will head this way)
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  • Profile picture of the author taranisman
    It def was bound to happen. Other than their paid advertising, you know that G was gonna try to make some more money eventually, They don't have quite enough yet.
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  • Profile picture of the author fotoflo
    I wonder if they'll offer an affiliate API. We'd love to build those paid subs into our CMS...
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    • Profile picture of the author Daniel Evans
      I was just admiring how utterly dire TV still is last night whilst flicking through the channels after watching a DVD. Sad stuff. Monotonously repetitive.

      I'd be more than willing to pay for a monthly suscription to a decent YouTube channel and hopefully the model will encourage more quality channels to surface.

      I's just another form of "on demand TV".

      Vice is a channel I'd pay to watch.


      Daniel
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  • Profile picture of the author JensSteyaert
    It'll work the same way as digital tv with monthly subscription worked.

    First step is to offer more quality channels. Then they'll cancel out the channels that get most views, best quality etc...Eventually only the garbage will be free and everybody will be paying monthly to access youtube. You'll see it happen step by step...

    And the worst about it is, everybody will be complaining, and everybody will be paying
    Ohh mind control and propaganda, it's so fascinating!
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  • Profile picture of the author butters
    I quite like this idea, a lot of smart TV's now come with youtube built in, this could most definitely be a medium for all areas of film/tv show production will get into. If it helps me get tv shows, sports etc... easier, I am all for it. Definitely could be a game changer for pubs and clubs in the UK at least, no more foreign abroad football, all depends if they will allow live streaming.
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  • Profile picture of the author Jason_V
    Yeah, I just read an article yesterday. Which with our lingo around here may have been titled: The Death of Cable Company Bundling

    3 companies that could change the way we watch TV forever
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  • Profile picture of the author Joan Altz
    Obviously this will work just as well as any membership site that feeds video content and it's success will depend on the quality of the content and channel promotion - just like everything else online.

    If a seller has something worth teaching (or whatever) and he chooses to use YT subscriptions rather than his own website, I would have no problem buying in, would you?
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  • Profile picture of the author jchengery
    Hello everyone,

    I know there are start-ups trying to disrupt the traditional cable/satellite premium subscription channel packages. YouTube might be the key though - if there is quality content on specific YT channels that you pay a small monthly subscription for, more people might be willing to pay for those and ditch the rest (including their expensive cable/satellite premium subscription channel packages).

    More and more people are using wireless adapters to stream or "transfer" their computer screens to their television screens. Additionally, you can plug most computers into televisions nowadays because they have HDMI connections, plus most TVs have PC modes, so this might be the viable way that people can finally get past the cable/subscription packages that those companies don't want to be giving up, especially if the companies realize that they can make money from such a set-up (from YouTube, and thus, the "subscribers" pay YouTube). Plus, the companies can have more banner advertising on their channels, giving them more opportunities to earn by people directly accessing their channels on YouTube. Plus, more TVs have Internet access as well, even talk of some of them becoming touchscreen too - Bigger is better with touchscreens and TVs at CES - Computerworld

    Imagine if you want 5 channels at $1-$5/month - you're paying $5-$25/month for quality content you actually watch instead of paying $50-$100+ month, only watching up to 5 channels per month and never checking out the other 145-245 channels you have on your subscription.

    Buyers certainly would go for that, and with enough monetization, the television networks themselves would be willing to break from traditional cable/satellite packages and offer them. It's just a question of whether cable/satellite subscribers would jump on board to be a "middleman" for that business model or if they would wait too long and television networks would do it themselves with YouTube and the buyer.

    It will be interesting to see, but I can definitely see YouTube being a prominent television channel provider in the future. At a reasonable monthly price for each channel (and you getting to choose what channels YOU want), I think it may have more demand than some might think, especially with the way television is turning to the Internet.

    Just my 2 cents.

    Take care,

    Joe Chengery
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  • Profile picture of the author ddpromo1
    Thanks for the article! Might help me with my online show.
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  • Profile picture of the author RedShifted
    I'm very curious if this has anything to do with adblockers becoming so popular lately. I've never used them, but if they block ads on a video (I'm not even sure how they work) it would seem like youtube may be trying to compensate for lost revenue (just a thought).

    Because technically speaking, you already pay to watch a lot of videos. Just with your time, not money.

    I'm also curious how blackhatters will react to this. Whether they'll start paying for programs/videos just to steal them, and upload them for their own benefit.

    Either way it will be interesting.

    -Red
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  • Profile picture of the author DTGeorge
    This is an inevitable, but good idea.

    I see this helping BOTH the consumers and the show producers

    1. Helps indie producers to make some immediate cash without having to suck up to the big tv networks
    2. Helps the tv networks to decide on the profitability of a show before picking it up. Lots of shows are picked up and produced, only to be abandoned after 4-5 episodes due to bad ratings
    3. For shows that have rabid but small followings, it allows them to extend their lives on Youtube Premium TV
    4. Additional revenue stream for tv shows

    For the fans
    1. It means that fans who like shows that simply don't have the following to make it on the big tv networks (e.g. firefly, arrested development) are more likely to have them continued because of the easy access on Youtube Premium.
    2. Gives another platform that people regularly interact with to watch their favorite shows.

    The problems are really for the other on demand video producers - can't see this going down very well for Netflix, Redbox etc as it represents a major player on the market.
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