Google is preparing to announce a subscription service from up to 50 YouTube specialist channels which will start at USD 1.99 a month per channel, reports the Financial Times, citing people familiar with the plans. YouTube has been preparing the move for months in an effort to finance a broader content range and to add a second revenue stream. According to the report, the announcement could be made as early as this week.
YouTube told the newspaper it had “nothing to announce” about channel subscriptions, but said it was looking into creating a subscription platform to bring more content to YouTube users and to provide creators with another way to generate revenues beyond rental and ad-supported models. A person familiar with the project said cable and satellite channels are interested in the planned service.
YouTube’s ad-supported channels have helped boost the portal’s audience to 1 billion users a month. Discovery Communications, Comcast, Time Warner and others have invested in companies that aggregate or create YouTube content. DreamWorks Animation has just acquired YouTube network Awesomeness TV for up to USD 117 million, if it meets earning targets.
