I’ve been working on many interesting projects with amazing people in the past few months and it was really great to understand some of the stuff I did.
I just wanted to say Hi in a small blog post, but then realized .. What the heck? Let me share something interesting and add value 🙂
Following and working with the digital media industry ensured, I saw the digital revolution of information and content consumption first hand! Now, why am I telling you all this?
YouTube, a website .. a platform, started 10 years ago, acquired by Google and although there have been many companies trying to understand and commercialize video (including Google’s own Google Video), YouTube has had the most success in terms of audience and monetization (more on that later).
Coming to the topic of interest, YouTube Red. What is all this about?
- Movies (Google’s movie subscription/rental model through the PlayStore) &
- Music (coming soon)!
YouTube Red costs $9.99 and launches in United States on the 28th of Oct. 2015
What advantage do we have as consumers?
YouTube tells us that we will not have to skip the Ad after 5 seconds and that, we will have the ability to play music in the background with Red.
YouTube currently doesn’t support only audio to play in the background of any app. This probably was intentional or someone forgot to add the feature the first time the app released 😀 Just kidding!!
What does YouTube do to all it’s existing audience who don’t pay?
YouTube ensures (for now) that audience have both the options available – with Ads and without Ads on Red. YouTube also plans to produce original content (just like Netflix) exclusively for it’s Red service.
How does it ensure content creators make money?
Just so that you know, there are a lot of people actively making money from YouTube and the company I work with, Whacked Out Media (http://whackedout.in) is one of them!
From what I understand, YouTube will pay Content Partners (people/companies who own content that get’s uploaded to YouTube) based on how much each user has watched the partner’s content.
Finally, what benefits does YouTube have?
Thinking of asking someone to pay on YouTube doesn’t make much sense to me unless there is exclusive and engaging content. Netflix & Hulu work on a model where they have exclusive content. Facebook on the other hand mostly triggers virality with engaging content.
By virtue of Google’s / YouTube’s reach if Red has enough adoption, YouTube will definitely beat companies like Spotify, Netflix and Apple’s iTunes at their own game of distribution and content delivery. Finally, this is YouTube’s chance at having paying customers!
YouTube Red will have to have a whole lot of amazing exclusive content in order to compete and beat the competition. Exclusivity will be key for the platform to get the traction it desires. Exposing content on the regular YouTube platform will only kill exclusivity and consumers would eventually want to pay nothing!
Working closely with Creators & Content Partners, YouTube definitely understands their pain points. It is upto the company to ensure they are addressed.