The world’s largest videosharing platform is obviously YouTube, with billions of views every day. However, Google hasn’t been able to effectively monetize it.
Sure, ads do help and are bringing billions of dollars into Google’s coffers, the full potential of YouTube hasn’t been realized. Today, Google is trying to do just that with YouTube Red, which is an exclusive paid-only YouTube service that gives you features like ad-free content, ability to download videos, ability to play videos in the background on any platform (Such as when playing music videos) and most importantly a selection of exclusive content from prominent YouTubers like PewDiePie and Lily Singh and media networks.
Google says that exclusive content would bring in new users and that only a percentage of the large userbase would adopt YouTube Red. so advertisers and creators need not worry. Moreover, creators would be getting more revenue from Google depending on how engaged their viewers are with Google’s new service.
It would cost $9.99 a month, same as that of a Netflix Membership. Many people use Ad-blockers, and it is yet unclear how lucrative exclusive content from YouTubers would be. Also, many apps already offer video-downloading and background-play features, so YouTube’s primary advantage is in the original content.
However, as it comes to economies of scale, even if a minute percentage of YouTube’s massive userbase sign up, Google would still make lots of money.
What do you think? Can YouTube Red eclipse the likes of Netflix?