Netflix needs subscriptions because it does not have prior advertising infrastructure. YouTube does not need to follow it to subscription. YouTube has a business built on adverts and the inventory is assured through the Google world; simply, it needs to stay on ad-supported business. That has been my thesis because YouTube with the population of a continent, and regular supply of ad inventory, it can thrive on adverts without subscriptions. So the news that YouTube is moving towards an ad-supported model for its Originals is in order. Over time, YouTube will outperform any subscription-driven model in its ecosystem.
YouTube Chief Business Officer Robert Kyncl reaffirmed the company’s plans to take its Originals out from behind the paywall, making them free and ad-supported.
Kyncl was speaking at YouTube’s annual Brandcast event, where the Google-owned company lays out its plans for advertisers (with lots of razzle-dazzle provided by musicians and YouTube stars). Since last fall, YouTube has acknowledged that it’s moving toward an ad-supported model for its Originals, and tonight, Kyncl said that all original programming moving forward will have an ad-supported window
YouTube was built on aggregation – that has worked excellently and should stay that way. The addition of Originals should not change that fundamental construct.