Dive Brief:
- YouTube is launching a $10 monthly no ad subscription service, and media brands including NBCUniversal, A+E Networks and Fox Sports have agreed to provide content.
- Content providers will get 55% of subscription revenue overall and the actual breakdown will be dependent on how long each providers’ content is viewed.
- YouTube plans on providing all content on both the subscription and free versions of the site.
Dive Insight:
YouTube is planning on offering an ad-free version of its service, and so far, several big media brands are on board with the idea, including Time Warner’s Turner cable unit, Fox Sports, A+E Networks Inc., and NBCUniversal. According to a Wall Street Journal report, Disney is still in negotiations. Though not all media companies were eager about the pay model that splits 55% of overall revenue collectively among all participating brands. According to WSJ, some are even attempting to negotiate ways to sweeten the deals with additional promotion on the video platform, for example.
In a statement YouTube said, “We are progressing according to plan to provide fans more options in how they enjoy content on YouTube. We have support from the overwhelming majority of our partners, with over 98% of content watched on YouTube covered by agreements, and more in the pipeline about to close.”
Responding to advertiser feedback, YouTube recently made headlines saying it will begin allowing third-party verification of ad viewability by the end of the year on the ad-supported version of the platform.
