Many newspapers have changed their course of providing online content by imposing a certain minimal fee on their subscribers. Those who value information more than the penny showed no reluctance to the new initiative, while others searched for free alternatives to cater their needs. Well with outnumbered substitutes for the online news, the users may have agreed to make a compromise but what if Google owned YouTube, the largest video streaming site too starts charging its viewers for its streamed content?
Friends I do not intend to scare you by making such a blunt statement. All I am talking about here is a rumor soaring high in the internet world about YouTube beginning to charge web users for watching full-length television programs on the site, as it seeks to increase the video-sharing site’s revenue potential. As reported by All Things Digital, YouTube is in preliminary talks with the networks and studios regarding charging a fee for streaming the TV shows on the site.
YouTube has partnered with various TV show providers like Univision, Tim Warner, Walt Disney etc including Channel 4 quite recently. The site had no initial plans to charge users for the streamed shows. However the new proposal seems to gather a positive feedback from both sides. Does it mean that this step puts YouTube in direct competition with Apple and Amazon that offer similar services through their sites?
Writer Peter Kafka highlights a controversial state saying “The biggest stumbling block may be consumers. That’s because Google (GOOG) is talking about streaming the shows instead of letting consumers download them to their computers, as both Apple (AAPL) and Amazon (AMZN) do.The networks and studios, which control pricing, will want to sell the streamed shows at the same price as downloads; they fear that offering them at a different price will force them to go back and rework their existing deals.”
Well convincing consumers to pay for the TV shows may not be an easy task for the broadcasters. Undoubtedly YouTube has significantly captured the major portion of the video streaming market. But reaching out to the pockets of those enjoying the free service so far, may help providers to generate additional revenue streams but will also require a major shift in the existing YouTube culture. The news though a rumor at present but holds major potential to disturb YouTube fans accustomed to enjoying its free services.
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One Response
I’m not surprised, everyone these days are trying to nickle and dime you to death.