Dive Brief:
- It's official: YouTube Red, its $9.99 monthly ad-free subscription service, will include elements beyond ad-free access to YouTube’s video library including offline downloads and a subscription to Google Play Music.
- Content providers and publishers will get 55% of subscription revenue with the breakdown dependent on how long content is viewed.
- YouTube Red is set to officially launch Oct. 28 in the U.S., and then globally soon afterwards.
Dive Insight:
YouTube is set to officially launch its subscription ad-free service, YouTube Red. For a $9.99 monthly fee, users will get ad-free access to YouTube’s video library as well as offline downloads and a subscription to Google Play Music streaming and download service. YouTube will also make some original content that it finances only available to YouTube Red subscribers.
Content providers are essentially forced to participate in the new service. Any video available on the ad-supported free version of YouTube must also be available for YouTube Red subscribers ad-free, or YouTube will completely remove videos of non-compliant content creators. But, content providers who do agree to the terms will be getting 55% of subscriber revenue with the actual breakdown based on how long each publisher’s content is viewed via the service.
YouTube Red will initially launch in the U.S. next week and will include YouTube Red and YouTube Music with YouTube Red Originals rolling out early next year. U.S. users will be offered a one month free trial of the service.
