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Ad-Free Shows Like ‘Cobra Kai’ On YouTube Would Be Charged At Higher Rates


05/18/2018


Ad-Free Shows Like ‘Cobra Kai’ On YouTube Would Be Charged At Higher Rates
A new version of its music service is set to be launched by YouTube while at the same time the company is also set to increase charges for users to view originals such as “Karate Kid” spinoff.
 
It was two years ago that YouTube had started its service - YouTube Red, allowing subscribers access to on-demand music service which was similar to those offered by Spotify or Apple Music. Additionally, the company also launched a program for user access to original programming that was created just for the service. Ads from the world’s largest video service were also removed by YouTube Red. The subscription was $10. But now that’s changing.
 
A renewed version of the current music streaming service is to be launched by YouTube – YouTube Music, next week. There are some changes in the service such as extra bells and whistles such as personalized playlists based on the user’s YouTube history and other usage patterns.
 
Following a trial period, the service is slated to cost $10 a month.
And for the other parts of YouTube Red, the company now plans to charge $2 extra. However that additional part can only be accessed if one subscribes for YouTube Music.
 
Ads from music videos are removed when a user pays up $10 for YouTube Music but the ads remains for the rest of YouTube. The service allows users to download music for offline listening as well as keep playing the music in the background while the computer or device is used for something else. ads from all of YouTube would be removed by YouTube Premium’s $12 a month subscription.
 
There are a couple of reasons for a possible success of this model.
 
Despite YouTube never accepting it in public, the company had for long viewed YouTube Red as a music subscription service. There were complaints by music labels that no revenues for them were generated by the free, ad-supported service of YouTube and that is largely the reason that YouTube built YouTube Music. And at Recode’s Code Media conference in February, YouTube Red was even mentioned as a music service by YouTube CEO Susan Wojcicki. At that time such a comment appeared to be inadvertent but carried a lot of meaning now.
 
YouTube owner google or its owner Alphabet, all of which makes huge amounts of money, had not spent money anywhere close to what had been expended by the likes of Netflix Amazon on its original programming that were shown on YouTube Red. However, this process could make the task easier for YouTube to and Google to decide the actual monetary value of “Cobra Kai” and other programs and they would also be able to view which users intend to pay them for a Spotify-like music service and which users desire to watch YouTube originals. Then the company would be able to charge them accordingly. Which in turn could be a confidence booster for spending on original programs.
 
(Source:www.recode.com)