YouTube may be about to diversify its content in an extreme way – by charging for it. Whether by one-off rentals and download fees, or monthly subscriptions, it looks as though YouTube is set to make revenue from methods other than advertising.
YouTube Goes Long
began as a bit of a Wild West of online video, but soon settled down to become the number one site for short, user-generated clips in the world. Mainly under Google‘s ownership and tutelage.
But it has recently been trying to add more professional, long-form content as well. Some old movies and TV shows are now available on the site, and in the U.K. it has recently inked a deal with Channel 4 to have its archive of programming added to the site.
However, while Channel 4 is happy to sell its wares to YouTube for advertising revenue (alongside 4oD), most content creators and television networks aren’t so ready and willing to license their content. At least not merely for a share of advertising revenue.
Cue alternative revenue models.
Revenue Options
In September we reported how movies could be coming to YouTube, offered on a $3.99 rental basis similar to the standard set by Apple iTunes.
Then just a few weeks ago we reported how TV shows could also be added to the mix, with YouTube charging $1.99-per-episode.
This wouldn’t be going against the grain as Hulu is almost guaranteed to be preparing to charge for some content, while Apple is thought to be considering a $30-a-month eat-all-you-can subscription plan.
Subscription Plans
And now, according to Reuters, Google’s vice president of content partnerships, David Eun, has paved the way for YouTube to start a similar plan.
He said:
“We’re making some interesting bets on long-form content; not all content is accessible to us with the advertising model.”
In which case YouTube would like to offer content partners the option which works best for them. So the ones who are happy to take a share of the advertising revenue generated on the site can do, with others being able to opt for alternatives.
As well as rentals and downloads, monthly subscription fees are being considered. Which would put YouTube in direct competition with Cable companies.
Conclusions
This kind of deal would make sense for content creators and television networks which can see the future is in online video but which doesn’t want to give up the right to make a ton of money on licensing content.
The danger for YouTube is trying to be everything to everyone. And the site could end up cannibalizing itself by not focusing on one particular aspect of online video. Which until now has been short-form UGC.
