Google Set to Offer Ad-Free Subscription-Based Online Videos on YouTube

Google Inc.'s YouTube is set to offer an ad-free, subscription-based service according to a recent email it sent to its content creators obtained by Bloomberg. ""By creating a new paid offering, we'll generate a new source of revenue that will supplement your fast growing advertising service," the email said.

"YouTube will pay you 55% of the total net revenues recognized by YouTube from subscription fees that are attributable to the monthly views or watchtime of your Content as a percentage of the monthly views or watchtime of all or a subset of participating content in the relevant subscription offering (as determined by YouTube)," said the company to its content creators. "If your Content is included in and viewed by a user in multiple subscription offerings, YouTube will pay you based on the subscription offering with the highest amount of net revenues recognized by YouTube, as calculated by YouTube."

According to The Verge, YouTube's forthcoming paid subscription offering is expected to become available within the next few months. Citing unnamed sources, the tech site said that by then, YouTube will be offering customers ad-free videos, and the ability to store videos offline on mobile devices, for a likely price of around $10 a month. The offering may also include lower-priced subscriptions for certain specific categories like music and children's programs. Corollary to this, it will also let creators put their videos behind a paywall so that only subscribers to the premium version can view them. The revenues from the paid subscription will be pooled, with partners receiving 55 percent of the total. Individual partners' cuts will be apportioned based on how much time their viewers spend watching their channels.

Five months ago, YouTube officially launched Music Key, its first subscription-based service, albeit it is still an invite-only beta, which lets customers access premium-quality music on the site, as well as give them offline access, without ads for $10 a month.