As you might already know by now, Youtube is planning on releasing an ad-free subscription, also known as YouTube Red, that is going live next week. YouTube Red can fail. We are not talking about possibilities here, but about a reality. YouTube Red can fail and it can do it without worrying too much. Because even if it does, YouTube is going to make a lot of money out of it.
Things got a little bit trickier back there, right? So let us explain the situation: when y are the biggest entertainment provider on the internet, you do not exactly care if nobody, 10 thousand or one billion people will decide to use your extra service. As long as, out of one billion people, only one million will decide to give you $10 every month, that’s a $10 million profit every month. Period.
Paul Verna, an eMarketer and well known analyst, has given insight as to how the entire process works: “When you’re dealing with that kind of scale that YouTube has, something as small as one to two percent is still going to make a pretty big difference.” And that’s how YouTube thought it through. It either generates money from all the ads that it’s using, or from the people who want to see no ads.
YouTube stated in a blog post that the new service is going to be released on the 28th of October. It has a very special set of features: you can play videos while you are offline, when you are searching for anything on the internet and, the best part, you get no ads. Ads are gone. Want to buy this? No. Want to go there? No. Want to spend money that will benefit you in no way? No. It’s done. Ads are officially done.
But not all people feel the same way about it. Some might still enjoy the benefit of ads, they might want to buy new things, visit places they’ve never been to before or simply throw money away. The internet helps them do that efficiently and ads are their best friends. But for the most of us, ads are literally a pain. Imagine that if the majority of people did not want ads anymore, this service would not have been created in the first place.
So yes, YouTube Red can fail graciously because it is going to be back on its feet in no time, regardless of user interest.
Photo Credits wikimedia.org