World’s largest video repository, Youtube has announced to allow creators to set up paid channel memberships, a move helping itself and its users diversify revenue after a turbulent year.
Presently, the vast majority of revenue at Google’s owned service comes from advertising and it will remain a focus informed Neal Mohan, YouTube’s chief products officer.
Viewers will have to pay US $4.99 a month for channel membership that will allow them to access premium content including live streams, extra videos or shout-outs on channels with more than 100,000 subscribers.
In addition, video creators will be able to sell merchandise like phone cases, shirts, directly on their channels said the company.
Rohit Dhawan, senior director of product management at YouTube said, YouTube is keeping $1.50 each month out of every $5 membership to justify resources involved. YouTube’s goal is to develop a suite of software for creators to manage fan relationships and envisioned tools, such as a way to send personalized “happy birthday” videos to members, requires large teams.
Some video makers saw their earnings shrink last year when Youtube placated advertisers by restricting where commercials appear. However, with new merchandise sales and paid memberships, video producers will likely get more control over their businesses.
The unit of Alphabet Inc’s Google is facing intense competition from other platforms which currently has registered 1.9 billion users.