James R | On 09, Apr 2015

YouTube has confirmed plans to offer an ad-free version of its video service to viewers.

The subscription-based model would allow its users to watch videos without adverts in exchange for a monthly fee. The move into SVOD territory puts the site directly into competition with Netflix, Amazon Prime and others. It also pits the site against new rival Vessel, which launched earlier this year. The VOD start-up offers YouTube videos to fans up to 72 hours before they premiere on YouTube for a low monthly subscription fee. This income is then used to generate more revenue for video creators, a strategy that has already wooed YouTube channel owners, who often struggle to make a solid buck from their offerings.

Now, YouTube has contacted members to inform them of their plan to do the same thing: “By creating a new paid offering, we’ll generate a new source of revenue that will supplement your fast growing advertising service.”

The full letter, courtesy of Bloomberg, is here:

The price of the monthly subscription has not been confirmed – and perhaps not even decided – yet, but Vessel currently charges $2.99 a month, so it is likely to be a fee designed to compete with that amount.

The announcement has been expected for some time, following the recent launch of a similar offering from the site. YouTube’s Music Key Beta offers users ad-free access to music on the site for $10 a month, as well as offline access.

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