It looks like YouTube Red is playing hardball with its video creators. According to a new deal presented by its parent company Google, video creators must agree to the site's revenue share deal—or else their content will be hidden by the site.
The ad revenue deal only extends to YouTube "personalities," or "partner creators," which means that those forced to sign the new, mandatory contract can't only consider the value of uploading the occasional video of their grumpy cat or bite-sized dog. Becoming a partner means they can monetize their content through merchandise, paid subscriptions, and ads.
For the purposes of YouTube Red—described as the "ultimate YouTube experience" by the streaming service in an official press statement released Oct. 21—it's that last factor that truly counts. YouTube's new membership requires a $9.99 subscription, and with it the ability to stream videos sans advertisements on all devices, including iOS, Android, and desktop. YouTube Red also covers all apps, from YouTube Gaming, which launched this past August, to the YouTube music app, which allows users to listen to music offline. Switching out monetized ads might be considered detrimental to the video creators themselves, and even more of a blow for YouTube's revenue as a whole, but as indicated by an unconfirmed source from Tech Crunch, that might not be exactly how the model operates.
YouTube's Chief Business Officer Robert Kync stated that almost all of the video creators have signed on for the deal; as of now, there has been no word, official or non, from creators who have backed away from YouTube Red's demands. Kync also assured YouTube users (and indirectly, video partners) that creators will receive "the vast, vast majority of revenue," but no concise percentage or figure has been given.
Via: Tech Crunch
