Content producers are on notice as one of the world's largest content providers prepares to push a fee-based model after offering its collection of on-demand video for free. Near the end of October, YouTube will roll finally roll out its subscription service.
The service is expected to launch in a two-for-one format, with one monthly fee covering both music and video subscriptions, sources told Re/code. As for pricing, YouTube will be offering subscriptions for $10 a month if reports hold true.
The sources also told Re/code to expect the service to go live at some point near the end of October, which jives with a notice YouTube has sent out to content producers who use the video service.
While the notice doesn't indicate exactly when the service will launch, it urges content producers to sign onto YouTube's new monetization model before Oct. 22.
Content producers can sign the agreement at any point, even after the cutoff date, but there will be consequences for doing so after Oct. 22. Those who haven't signed on after the cutoff date will have their videos removed from the public eye and they'll be unable to monentize the content through YouTube.
"That outcome would be a loss for YouTube, a loss for the thriving presence you've built on the platform, and above all, a loss for your fans," the notice states. "We remain committed to working with you, as we always have."
In August 2014, reports emerged indicating the launch of a YouTube subscription service was imminent. There was much more than a healthy dose of backlash from musicians over the service, with indie artists in particular expressing anger over a monentization model they felt would pay them less for the same effort that helped make YouTube what it is today.
Three months later, Google launched YouTube Music Key for $10 a month. Now, it appears the next major step in YouTube's master plan is due this October.
As the music and film industries switch to streaming formats, YouTube's two-in-one service could put the company in position to compete with the oh-so-enticing original content being churned out by Netflix and Amazon and possibly even Apple soon.
A YouTube spokesperson offered a statement confirming the upcoming changes and detailing the level of support it has gained after years of pushback from indie artists.
"We have support from the overwhelming majority of our partners, with over 95 percent of YouTube watch-time covered by agreements, and more in the pipeline about to close," the statement reads.
