As a lot of you may have heard, YouTube is moving into a subscription based model. Meaning it wants to charge customers more in line with what Spotify and Apple Music are doing. The price is $10 a month which is the same as the others but in terms of royalties YouTube Red is lacking.Spotify is paying artists 70%, Apple Music is paying 71.5%, and YouTube is only paying creators 55%.

What is a bit concerning is YouTube’s way of strong arming people who do not agree with the terms of YouTube Red. If you decide you don’t like the terms of YouTube Red and decide to decline the contract, YouTube is actually going to make your videos private from both the general public and YouTube Red customers.

The other issue in question is, will people actually pay to watch videos on YouTube? Sure it comes with some new features such as no annoying ads during the video or you can listen to the video when looking at another app on your phone. There will also be a offline playback feature along with some exclusive content from the top video creators on YouTube. Will that be enough to sway customers to dish out another $120 per year?

For the people who have not yet accepted the contract be aware of the consequences of not doing so if you are currently monetizing your videos. Your videos can be potentially hidden from the public. For the customers who are thinking about subscribing to Red, don’t do it through the iOS app. In doing so you will be paying $3 more per month. YouTube says it’s charging more on iOS due to Apple taking 30% off the top.

YouTube Red officially launches on October 28 in the US.

2 Responses

  1. hypercoyote

    So long as we live in a world of greed, that lust for money will continue to ruin good things.


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