Google has previously pointed out that the existence of a subscription system for YouTube was a possibility. The company was already considering the idea of offering a payment system to consumers, so that they could access all the videos on the company’s video network without having to see a single ad while they were doing it. YouTube would thus become a tool with two access models, one freemium, in which consumers do not pay for content but have to watch ads, and another premium, in which a fee eliminates advertising. In this way, YouTube would join the companies that are struggling to take over the market for on-demand content and to monetize it directly. Firms like Netflix or Amazon already offer paid content that consumers can watch without ads.
The launch of the idea could be imminent. The appearance of a message associated with a mysterious service, YouTube Red, in the YouTube app for Android led the US media to speculate and to explain the existence of this message to the imminent arrival of the subscription service. . The fact that today, September 29, Google has planned an event with media means that it can even set a date when the service will be presented. Added to this is the fact that youtubers have begun to receive e-mails in which they are asked to update the conditions of their relationship with Google when it comes to monetizing content through YouTube’s advertising tools, since Bahamas phone numbers list now they will have to accept a new service update. They will also have to do it before October 22, which leads to think that the launch date of this new product will be on that specific date.
And given that for brands YouTube has become an unquestionable element to reach the public and that the ads that accompany the videos in a kind of new dream scenario in which everyone wants to participate to try to connect with the audience, the decision of the company could have many more implications than simply the emergence of a new business model for the video portal. Will this Google decision change the modus operandi of companies on YouTube? The brands were already doing it in part but now that the ads are going to disappear they will have to do it in an even more militant way. Reaching the consumer will become much more complicated and something that will have to be a more natural part of the content.
Before you panic and think that once the ads are removed the company’s products will disappear from the video network, there are many more variables to consider. The first is that the service will be paid and that a freemium option will be maintained at the same time. To begin with, one would have to wonder if YouTube content will have enough pull to make consumers open their wallet and pay to view it. To continue, it should be remembered that when there is a freemium option it is very difficult to convince certain consumers to switch to the payment option.
And secondly, the options of the brands will not run out the moment that Google opens the subscription and removes the advertising. For many brands, YouTube is not just a platform to reach the consumer through ads. Many companies have made it the epicenter of their content marketing strategy and have thus managed to position themselves directly by offering the information consumers are looking for. Those videos will continue to be there and they will also do so in a much more consumer-friendly way, since they will not be surrounded by ads (ads, on the other hand, that the brand cannot control).
Also, there are more ways to advertise. Brands will have to summarize that strategy that filled the television programs with their products and not go through Google’s advertising tools to be included in the videos, but go directly to the creators. Brands will have to do product placement on YouTube videos. Companies must find the content producers most akin to their products and their brands and negotiate with them to include their products in their productions. For example, the cosmetic brand on duty may not be able to show its latest innovation to have infinite eyelashes before the video of the fashion vlogger, but it will be able to negotiate with her so that the mascara she uses in her tutorial is yours.