BY ZACK MESSICK
Over the past year, YouTube has been working towards the expansion of the website in preparation for the production of original content. Recent reports have indicated that Google, the owner of YouTube, is preparing to unveil a new feature on the popular video-streaming site, which would allow viewers to take part in a subscription service for special video channels. The subscription fee is therefore optional, and users should not worry about its implementation affecting one’s ability to see the latest viral sensations.
A formal announcement is expected to come within the next few weeks regarding the service, which will likely apply to approximately 50 YouTube channels, ranging in content from children’s programming to entertainment, to music. Each channel will require a separate subscription fee of approximately $1.99 per month, with the money to be put toward the channel operator’s production of original content, including both web series and films. Google originally made a push for original videos when it paid a reported $100 million to fund promising talent. YouTube has since issued a statement to the Washington Post claiming that the company is “looking into creating a subscription platform that could bring even more great content to YouTube for our users to enjoy and provide our partners with another vehicle to generate revenue and ad-supported models we offer.”
Digital video advertising on YouTube has been on the rise as of late and eMarketer experts suggest that the cost will jump from $2.93 billion to $4.14 billion in 2013. As a result of this increase, YouTube is expected to make $2 billion this year and could potentially obtain revenue in excess of $15 billion within the next few years.
With this announcement, YouTube joins the likes of various other websites including Hulu and Netflix, both of which have started to produce original programming including A Day in the Life, and House of Cards. YouTube seeks to gain an advantage over its competitors through an additional expansion into music, as there are plans to launch a music streaming service similar to Spotify. With many of the site’s current channels attracting millions of subscribers, Google executives expect the new ventures to be successful and profitable, thereby allowing viewers to be treated to content of a higher quality.
