Last week YouTube announced that it would start offering new paid channels as part of a pilot program with a small group of partners. The fees will start at 99 cents per month and each channel will offer a free 14-day trial.
Some of the paid channels that have already launched include National Geographic Kids, PGA Digital Golf Academy, Pets.TV, UFC Select, and more. There are currently 54 paid channels (there are more than 1 million channels on YouTube) and the company says it will be adding more.
Currently, users subscribe through their account and once they have paid for a channel, they can watch it from their computer, TV, smartphone or tablet. YouTube also says that additional viewing options will be available in the future.
In a YouTube blog post the company states that the paid channels are a response to requests from video posters who are looking for more ways to monetize their videos and channels.
Can Businesses Create Paid YouTube Channels?
Businesses that are interested in creating their own paid YouTube Channel can fill out a sign up form. Currently, all submissions will be reviewed and may or may not be accepted as a paid channel partner.
Since the paid channel program is currently a pilot program, it remains to be seen how YouTube will develop it and how businesses will get to use the new option. However, assuming the service becomes more popular, businesses will likely get to be a bigger part of the program.
Will Your Business Benefit from a Paid Channel?
If your business already has a successful YouTube Channel it may very well benefit from a paid channel, since you could earn revenue from subscriptions, not just advertisements. If your business and products are conducive to things like previews, how-to videos, product reviews and event videos, it may benefit from paid YouTube Channels.
However, the benefits of a paid YouTube Channel aren’t just monetary. Businesses with successful videos and channels benefit from things like increased exposure, viral ad campaigns, social media buzz, raised awareness, increased site traffic and more sales.
How will Users React?
As with any major social media change, one of the biggest questions being asked is “How will users react?” YouTube users aren’t likely to leave the site in droves, since the site has become an Internet video staple, but will they be wiling to pay for content? Many feel social media should be free to use, much like email. Normally, businesses are able to profit directly through ads on the site, whether that be the social media business or the businesses that use the site. However, some sites, like LinkedIn do offer paid features, which seem to be successful.
Much like any other product or marketing tool, paid YouTube Channels will likely be successful if the content being shared is valuable to the audience, helpful, entertaining and useful. Channels that are able to provide the best content may find it easy to gain subscribers. Will you apply for a paid channel? Do you think the new feature will benefit your business?