Youtube, the all pervasive video site has become the hot bed for Online Advertisers, As per a filing by financial times, Google will be charging a subscription fee for some of Youtube’s specialist channels to add a new revenue stream in digital video market, official announcement of the news is expected as early as this week . The subscription fee can start from as little as $1.99 that will allow channel operators to create different content such as TV shows, movies.
Youtube has not conveyed the news definitively but hinted that creating a subscription platform can bring even more great content to YouTube. Youtube’s shift from its earlier notion of producing user generated content to professional production of videos has helped it expand its audience to 1 billion a month. Youtube’s ad revenue is expected to rise from $1.3bn to around $2 bn this year.
Youtube, which has recently crossed 1 billion monthly users is a home for more than 15 percent of the population on this planet. It has also become one of the favourite destination for entertainment companies such as Time Warner, Discovery communications and Comcast, as they have invested in other companies that create and aggregate content on Youtube, in last 12 months.
Following the recent trend, Dreamwork animation, a US based animation studio has announced last week that it has acquired AwesomenessTV, one of the most subscribed-to teen network on Youtube. The deal has been closed on $33 billion as an upfront cash payment, with an additional payments of up to $117 million, if Youtube reaches a certain earning targets in 2014 and 2015.
Awesomeness TV, with its 55,000 youtube channels has grown a rich user-base of over 14 billion subscribers over the years, and the acquisition will help Dreamworks to align itself with Youtube’s impressive customer base which would then help the company to keep connected to its audience all around the world over the internet, almost all the time.
“Content creators have long recognized the power of YouTube’s platform to connect with an audience. Advertisers are increasingly doing the same. Together we’ll continue to build YouTube as a global destination for the next generation of entertainment.” said Youtube in a blogpost.
These acquisitions very clearly shows the growing value of digital content for traditional entertainment companies and with Youtube accounting more than 6 billion hours of video play time each month, it could be a better option for entertainment companies as well as for advertisers.