YouTube is about to change online video watching forever. Several sources familiar with the matter told AdAge that Google (NASDAQ:GOOG) will soon launch paid subscriptions for individual channels on its video platform. This new model of distribution was developed a means to convince content producers, viewers, and advertisers to make YouTube their preferred outlet rather than traditional television.
From sources’ reports, YouTube has already asked several channel producers to submit applications to create channels that would cost users between $1 and $5 per month. The channels would primarily offer episodic content, but YouTube is considering charging for libraries of videos, live events, and self-help or financial advice shows as well.
Machinima, Maker Studios, and Fullscreen, whose channels have already become popular on YouTube, are expected to lead the transition to paid content, but according to the publication, the video platform is also looking beyond its current content providers to source content. However, it may have difficulties convincing its partners that paid-content channels are a profitable strategy, as many have worked hard to build up a free subscriber base. Now, if they participate, content providers will have to produce content that customers will want to buy.