YouTube close to launching Paid Subscriptions; more trouble for cable companies

Bradley Wint
By: - 6th May 2013
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YouTube is set to launch an à la carte paid subscription service for some of YouTube’s specialist video channels.

According to the the Financial Times (paywalled), YouTube will be adding another revenue stream to its business portfolio by launching à la carte paid subscriptions, initially via 50 of its major channel partners.

Users can subscribe to a channel for about US $1.99 to $5.00 per month with about 45% of that revenue going to YouTube and the remainder going to the channel owner.

Presently, YouTube allows channel owners to take part in a revenue sharing program via Adsense where they can take home some of the money being made from ad clicks displayed on videos, but according to Brian Wieser at Pivotal Research, YouTube still takes home a significant portion of total ad revenue. He expects that YouTube will earn about US $2 billion in revenue this year and foresees them making close to IS $15 billion in the next several years, rivaling more traditional media houses like CBS and Viacom.

FT says YouTube should make an announcement some time this week, so we’ll keep you updated when new events unfold.

[Cover Photo: Independent Blogs]

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