While still hugely
popular, YouTube is facing pressure on many
fronts. Key to Google’s response is the launch
of a long-rumored paid service, as well
as, an ongoing squeeze of the creators that
made YouTube popular.
Yesterday, Google’s YouTube sent a letter to its top creators
signalling the eminent launch of ad free paid
subscriptions. Rumored to be priced at $10 per
month, YouTube will let creators place videos behind
a paywall, so that only paid subscribers view them, sources
tell The Verge. Lower priced subscriptions
for specific categories like music are also possible.
YouTube’s music and video subscription service Music Key
remains in beta with a $7.99 monthly charge.
According to new YouTube terms of service, 55% of net
subscription revenue will be divided among all creators:
YouTube will pay you
55% of the total net revenues recognized by YouTube from
subscription fees that are attributable to the monthly views
or watchtime of your Content as a percentage of the monthly
views or watchtime of all or a subset of participating
content in the relevant subscription offering.
In the letter to creators (full text here) and the new terms of
service, YouTube informed creators that not signing the
new agreement would result in their videos being labeled as
private. No deadline to sign was given…