With its massive popularity, YouTube has already in everyone's eyes and ears. It's becoming more or less like a cult on the web where no other video-streaming service can come close. The company that succeeded in getting $4 billion revenue from displaying ads in 2014, is thinking to get more attention by giving a platform where people can watch and listen without any ads interrupting.
"For years, YouTube's fans have been telling us they want more - more choice when watching their favorite content, more ways to support their favorite creators and, above all, the option to watch their favorite videos uninterrupted," said YouTube in its blog post.
As of October 28th, 2015, users can can try a month-free trial of YouTube Red, the company's answer of delivering YouTube without ads. YouTube Red is a complement to, rather than a replacement for, the company’s existing ad-supported business model.
YouTube Red was first unveiled back in November 2014 with the name Music Key. It was a collaboration between YouTube and Google Play Music. Music Key offered ad-free music playback that are hosted by YouTube.
As Google also introduced tighter integration between Play Music and YouTube's apps, Music Key was taken aside from being YouTube's attempt to enter premium contents. People were confused by videos that were included outside the scope of the service. The concerns that led to more concerns made YouTube revamped Music Key to create YouTube Red.
Unlike Music Key, YouTube Red is designed to provide ad-free services to all hosted videos, rather than just music contents.
This shift required YouTube to seek content creators permissions as YouTube wants them to allow their contents to part of the ad-free service.
A Big Move To Change
By displaying no advertisements, YouTube Red is essentially a place for the "ultimate YouTube experience". But the introduction has "tortured" many YouTube professionals that are already making profit from their videos by displaying ads.
Although under the new contract terms, content creators would receive a share of the total revenue from YouTube Red subscriptions, as determined by how much of their content is viewed by subscribers, If they do follow YouTube's Red contract, their subscribers would be unable to access videos that non-subscribers have access to, which means subscribers would be getting less content than they would on free YouTube, not more.
“Both creators and users have been asking for a YouTube subscription service and that's why we built YouTube Red," said the company's spokesperson. "The overwhelming majority of our partners, representing nearly 99 percent of the content watched on YouTube, have signed up. Videos of partners who don't update their terms will be made private, but we remain committed to working closely with these partners with the goal of bringing them on board."
This method suggests that a vast majority of top content creators have signed to YouTube Red's revenue share deal. Not because they really wanted to, but it's because they didn't have much of a choice. Those who earn a cut of ad revenue but refused to sign the deal, will have their videos marked as "private" or hidden. This means that the public can't ever see them.
Beside being put aside from YouTube Red, they also won't appear on YouTube's regular ad-supported service.
Google, the company owns the video-sharing platform, said that this "encouragement" to sign the deal was to ensure consistency for viewers. Google doesn't want users to subscribe to YouTube Red to only realize that their favorite creators/star wasn't available there.
The remaining one percent is made up of those that make profits from YouTube channels. Based on the initial reaction, they're outraged with YouTube Red. One of them has even created a petition called "Stop YouTube Red" that has gathered thousands of signatures.
It says that YouTube is making people pay for blocking ads and forcing anyone to go forward with YouTube Red. This means that many popular YouTube content creators will be on YouTube Red, and leaves those who don't buy subscription to be unable to watch any of their videos.
YouTube content creators have not been unwarranted. For previous months, YouTube has been talking to them about its new subscription plans as a way to prioritize user experience above anything else.
About its controversies, people aren't just upset about the new contract they have to agree, it's more about how they have to pay to watch the YouTube videos they want.
YouTube's Chief Business Officer, Robert Kyncl, claimed that creators will receive "the vast, vast majority of revenue." But the YouTube Partner Program Terms said that creators are only paid with mere 55 percent of revenue. This is smaller than Spotify with 70 percent and Apple Music with 71.5 percent.
A Complement That Changes YouTube
Despite being a complement to the original ad-supported YouTube, by introducing YouTube Red, the company is taking a huge step in transforming itself from a free service, to a media service which people should pay to watch.
Similar to Netflix. As it funds original contents (a failed attempt by YouTube in 2012), the subscription service includes more exclusive series of videos to full length films.
To market the new efforts, YouTube has made a numerous announcements to promote its new subscription service. For $9.99 per month for web and Android users, or $12.99 for iOS users (Apple charges a 30 percent premium), the service removes ads, and allows users to save videos offline, and allows them to continue to listen to a YouTube video in the background on their mobile devices.
The service will also cover YouTube Music app which basically turns YouTube into a Spotify clone. YouTube Red gives users the access to Google Play Music, and in reverse, users that pay for Google Play Music will also get access to YouTube Red automatically.
Initially, YouTube Red is available in the United States.
"We're working to bring YouTube Red and our YouTube Music, [YouTube] Gaming and [YouTube] Kids apps to more countries soon. And don’t worry! The free, ad-supported version of YouTube we all know and love isn't going anywhere. You'll still be able to enjoy YouTube, along with the YouTube Kids, Gaming and Music apps free of charge. But with YouTube Red, you'll be able to support the people who make your favorite videos while watching what you want, when you want, on any device you want, uninterrupted."
YouTube is by far, the most popular media site on the web and mobile. Songs may be popular on streaming music sites and Spotify, for example, but according to Forbes their music video on YouTube can get more than 10 times the viewers.
As almost anyone knows YouTube and how to use it, the company has predicted that they'll be more likely to subscribe to YouTube Red than to other competing services that most are way behind the original YouTube.