INTERNET VIDEO GIANT Youtube reportedly is planning to launch a Premium service later this year, as it looks to compete with Netflix and Lovefilm.
That's according to advertsing website Adage, which claims that Youtube is working with a group of producers on a product that will see premium video channels with monthly subscription fees arriving on the video service.
Citing unnamed sources, the report says that Youtube visitors will be able to access the upcoming Premium channels by paying fees ranging from $1 to $5 per month. This will provide businesses and studios with another way to monetise their content, with the content owners allegedly set to take a 45 percent slice of the profits.
The report also suggested that Youtube is considering a model for one-time pay per view video purchases.
A Google spokesperson seemed to confirm the rumours too, telling the website, "We have long maintained that different content requires different types of payment models."
"The important thing is that, regardless of the model, our creators succeed on the platform. There are a lot of our content creators that think they would benefit from subscriptions, so we're looking at that."
It's unclear when Youtube plans to roll out this Premium service, but rumour has it that the firm will announce it at the Digital Content New Fronts event in late April before rolling it out in the second quarter. µ
Sign up for INQbot – a weekly roundup of the best from the INQ