YouTube, the world’s largest video-sharing platform, has announced a new policy that will prevent users from skipping or blocking ads on its website and app. The policy, which will take effect on January 1, 2024, is aimed at protecting the revenue of YouTube and its content creators, who rely on advertising to fund their work.
They’ve implemented a new strategy: when viewers attempt to use ad blockers, YouTube halts video playback and kindly suggests enabling ads or opting for the ad-free YouTube Premium subscription at $14/month. This comes after a test run over the summer with select users, which received mixed feedback from creators.
The decision has sparked mixed reactions from creators and viewers alike. Some have criticized YouTube for exploiting small creators and taking away their incentive to grow their channels. Others have defended YouTube’s right to run ads on its own platform and argued that the change will not affect most creators significantly.
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One of the prominent voices in favor of YouTube’s move is Hank Green, a well-known creator, entrepreneur, and author. Green, who has been making videos on YouTube since 2007, posted a thread on Twitter explaining why he supports YouTube’s decision and why he thinks it will benefit creators in the long run.
Green pointed out that ads are a vital source of income for many creators, especially those who make educational, informative, or niche content that may not attract other forms of sponsorship or funding. He said that YouTube’s move will help ensure that the platform remains viable and profitable, which in turn will allow it to invest more in its infrastructure, features, and policies that support creators.
Green also argued that YouTube’s move will not have a negative impact on most small creators, as they are unlikely to generate much revenue from ads anyway. He said that the main factors that determine a creator’s income are their audience size, engagement, and retention, not the presence or absence of ads. He added that creators who are serious about growing their channels should focus on improving their content quality, consistency, and value, rather than worrying about ads.
Green acknowledged that YouTube’s move may seem unfair or frustrating to some creators, but he urged them to look at the bigger picture and understand that YouTube is not trying to harm them, but rather to protect them and the platform as a whole. He said that YouTube is one of the few platforms that allows anyone to upload videos for free and reach a global audience, and that it has created many opportunities for creators to express themselves, educate others, entertain millions, and make a living from their passion.
According to Statista, YouTube Premium had 30 million subscribers worldwide as of June 2020. This means that only a small fraction of YouTube’s 2 billion monthly active users is willing to pay for the service, which costs $11.99 per month in the US. In comparison, Netflix had 208 million subscribers as of March 2021, and Spotify had 158 million as of December 2020.
One of the main reasons why YouTube Premium may not be appealing to many users is that it does not directly support the creators they watch. YouTube takes a 30% cut of the subscription revenue, and the rest is distributed among the creators based on how much watch time they generate from Premium subscribers. This means that a creator may not receive any significant income from YouTube Premium unless they have a large and loyal fan base.
Some critics argue that YouTube should either reduce the cost of YouTube Premium or provide a more attractive alternative to directly support creators. For example, YouTube could offer a tiered subscription model that allows users to choose how much they want to pay and which creators they want to support. Alternatively, YouTube could enable more options for users to tip or donate to their favorite creators, either through YouTube itself or through third-party platforms such as Patreon or PayPal.
By doing so, YouTube could potentially increase its subscription revenue, retain its users, and incentivize its creators to produce more quality content. It could also improve its reputation among the online community, which has often criticized YouTube for its policies and practices regarding monetization, censorship, and algorithm. Ultimately, YouTube Premium should aim to create a win-win situation for both the platform and the creators who make it possible.
According to YouTube, ad blockers are hurting the online video industry, as they deprive creators of the income they deserve for their hard work and creativity. YouTube also claims that ad blockers are unfair to advertisers, who pay to reach their target audience and expect a return on their investment.
YouTube’s new policy will require users to either watch the ads or pay for a YouTube Premium subscription, which offers ad-free viewing and other benefits. Users who try to use ad blockers will face consequences, such as reduced video quality, limited functionality, or even account suspension.
YouTube says that the policy is in line with its mission to provide a platform for everyone to express themselves and share their passions. By ensuring that creators and advertisers are fairly compensated, YouTube hopes to foster a healthy and sustainable online video ecosystem.
YouTube’s policy has received mixed reactions from users and experts. Some users have expressed support for the policy, saying that they understand the need for ads and appreciate the value of YouTube’s content. Others have criticized the policy, saying that it is intrusive, coercive, and violates their right to choose what they want to watch.
Some experts have praised YouTube for taking a bold step to protect its business model and encourage users to pay for its service. Others have warned that YouTube may face backlash from users who are used to watching videos without ads or with ad blockers. They also suggest that YouTube may lose some of its competitive edge to other platforms that offer more flexibility and options for users.
YouTube’s policy is expected to have a significant impact on the online video landscape, as it will affect millions of users, creators, and advertisers around the world. Whether it will be a success, or a failure remains to be seen.