YouTube to roll out ad-free paid subscription model

youtube logo 2015YouTube is poised to launch a paid for subscription model that will allow subscribers to bypass adverts.

Reports this morning suggest the roll out of the ad-free package could be as early as June.

The plan was revealed in an email sent by YouTube to its advertising partners.

“By creating a new paid offering, we’ll generate a new source of revenue that will supplement your fast growing advertising service,” the letter said.

It outlined to its advertising partners the growing demand for “your fans” to watch “what they want, whenever they want, anywhere and on any device they choose”.

In addition, they want “You Tube features built specifically with their needs in mind”.

“Over the past several months, we’ve taken bold new steps to bring these experiences to life,” the note said. “Since inviting hundreds of thousands of fans into our YouTube Music Key Beta, we’ve seen tremendous engagement. And we’ve seen an equally enthusiastic response for our new YouTube Kids app, designed to give families a simpler and safer video-viewing experience— it’s already crossed 2 million installations in less than one month.

“So we’re excited to build on this momentum by taking another big step in favour of choice; offering fans an ads-free version of YouTube for a monthly fee”.

YouTube is understood to have offered to pay advertising partner 55% of the total net revenues from subscription fees, the same percentage associated with advertising revenues.

Bloomberg quoted a statement from YouTube as saying: “While we can’t comment on ongoing discussions, giving fans more choice to enjoy the content they love and creators more opportunity to earn revenue are always amongst our top priorities.”

The statement did not comment on the timing of the launch or mention prices.

Google, the owners of YouTube, has not responded to Mumbrella requests for comment at time of publication.


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