Will YouTube benefit from 1.5 million subscribers of YouTube Red?

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Many publishers try to charge subscription fee in Music and Video services. For example, Apple Music obtained 17 million subscribers so far. YouTube, the world biggest original video website, released subscribed YouTube Red before. However, YouTube Red only obtained 1.5 million subscribers which faced difficulty to make profit.

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The Verge reported that YouTube offered completely free service in the past. Its videos were from net citizen uploaded. Its revenue was mainly from video advertising which limited the revenue growth of YouTube.

YouTube Red was released one year ago. Subscribers paid $10 each month for ads free and to access some exclusive videos. YouTube hoped to avail of YouTube Red to rival Netflix and Hulu.

It seemed that consumers were unwiling to pay for YouTube Red service. The confirmed source revealed that YouTube Red only obtained 1.5 million subscribers by the end of this summer. In addition, there were 1 million users applied for trial.

YouTube has 1 billion active monthly users as the world biggest video website. One and a half of subscribers meant that its users did not buy this subscription mode. They would rather browse a huge number of content with ads for free.

Google also released music streaming service that charges $ 10 for two months. It is different from YouTube Music as Red subscribers can enjoy free YouTube music service. It is well-known that Spotify and Pandora are leaders in subscribed music streaming market. Apple Music works hard to catch up with them, while Google and YouTube lost their advantages during competition.

YouTube Red faced competition from traditional televisions. Dish released Sling TV and CBS released online on-demand service.

YouTube specialized in offering original videos and has been developing for 11 years. It becomes world famous video publishers. It is said that YouTube will release about 20 original movies and tv series for its subscribers by the end of 2016. It surprised the public that its officer stated that YouTube is still in the early stage of investment. Alphabet did not reveal the earnings of YouTube in meetings that it announced Q3 earnings.

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