YouTube informs content creators of paid offering that will eliminate ads

The amount of money generated from advertisements is massive and keeps many companies and services afloat. However, consumers are not the biggest fans of ads and, in many cases, will gladly pay to not see them. YouTube has been cashing in on ads for years but will soon allow viewers to eliminate them.

A letter sent to YouTube content creators informs them that a paid offering is on the way. The paid offering will allow subscribers to not see a single ad while also saving videos for offline viewing. Pricing reportedly sits around $10 per month. There is even a possibility that the $10 price is lowered when a consumer chooses a category-specific subscription. It would make sense for parents taking advantage of YouTube Kids to opt for a subscription that focuses on children’s programming.

Content creators are being told that they can place videos behind a paywall. Even if a content creator does not want to be involved in the paid offering, they must accept the change in terms through the Creator Studio Dashboard. YouTube will switch any resisting channels to private.

YouTube collects around 45% of the advertising revenue generated by a channel while subscriptions will be pooled. Partners receive 55% of the total and individuals receive a different amount based on how much activity the channel sees.

Source: Bloomberg

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