Don’t Freak Out About the #YouTube Red Paid Subscription Model…Yet.
We now know that YouTube Red will be the name of YouTube’s premium subscription service, and that it will be releasing here in the United States October 28, 2105.
We also now know that it will combine a few interesting things. An ad free experience for YouTube viewers, access to Stream Music tied to the Google Play Store, and exclusive content that YouTube financed with Big YouTube stars like Pewedie Pie and Matt Pat of Game Theory.
We even know the price now. It will be a $9.99/month subscription service to essentially get a Netflix/Hulu and a Spotify. That’s not a bad deal in my honest opinion. (We may get the Google Plus Movies and Shows too).
But what does this mean for YouTube Creators?
Well it’s not as bad as everyone thinks it is… except for the month of December, that is really going to hurt…
Similar to when Apple Music released and announced its 3 month free trial period, there was concern. What about musicians? Until Taylor Swift called them out on it, Apple was going to not pay out royalties to musicians for those three months, which would be devastating for smaller artist.
YouTube Red will thankfully only have a 30 Day trial period and I’m fairly certain people will have to register a credit card for it. Which means that not everyone will grab up this trial, particularly not younger viewers.
So if you have a young audience that isn’t going to swipe their parents credit/debit card, you’re probably fine.
If you have an international audience you will be fine.
However, if you have mostly a U.S. audience over 18, well this may be problematic for you if you count on Adsense revenue.
Which means for the payout period of late December your November earnings will take a huge hit… But for 2016 it will be back to business as usual since 80–90% audience will still be watching free with ads.
Well the portion of your audience not using Ad Block at least….
Once the new year hit’s you’ll actually see some extra revenue from the YouTube audience that s active in the paid subscription model. It will be part of a pool and the revenue share will be determined by YouTube Watch Time…
Overall I’m really interested in this new YouTube Red service and will try to keep you as up to date on it as I possibly can once it rolls out. When it releases I will actually be at a conference doing a stage talk about Video Marketing…
This can be an opportunity or a problem for you as a YouTuber, for consumers it gives them new options and choices in how they consume content. Overall the biggest impact will be for those who don’t monetize outside of YouTube Adsense. For those creators I have a free video series you should reference on how to make money on YouTube.