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Weekly Wrap Up: YouTube Introduces Subscription Service, YouTube Red

Serendipit discusses the paid subscription service, YouTube Red, and its impact on the popular video site.

YouTube is introducing a subscription service called YouTube Red. The new experience is set to roll out on October 28th.

This service includes the elimination of ads, lets you save videos offline, and lets users listen to YouTube videos in the background on mobile devices – all for $9.99 a month. In January, users will also get access to exclusive subscriber-only content similar to that of Hulu, Amazon, and Netflix.

In addition, users will also have access to music-streaming service Google Music Play. This means that YouTube Red will be able to compete with music-steaming sites such as Spotify and Apple Music.

This could potentially have a large impact on viewership of advertisements on YouTube. This will greatly depend on the number of users who decide to go the Red route and pay $9.99 per month. However, this option will likely not appeal to the occasional YouTube browser and more of the younger audiences. In addition, many Internet users opt for free streaming options, so the playlist capability may not be as appealing.

If YouTube Red becomes the norm, however, this will greatly impact the exposure one receives for ads. In this case, it’s important for brands to seek creative ways to get their name out to video audiences, perhaps by creating captivating content themselves.

Serendipit stays on top of social media trends to create the most effective campaigns and strategies for our clients. Interested in advertising? Contact our team for a free consultation at 602-283-5209.

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