Ad-free viewing for $10 a month could create a challenger to both Spotify and Netflix.

YouTube’s paid subscription service is expected to launch within the next few months. Creators of popular YouTube channels have been told that the new service will offer ad-free videos and the ability to store videos offline on mobile devices, as well as giving them the chance to put videos behind a paywall so that only premium subscribers can watch them. The subscription price is expected to be around $10 a month.

As tech site The Verge reports, YouTube is offering the biggest channels a new way to make money through the changes. While YouTube will take around 45% of all ad revenue generated by a channel, it plans to pool the subscription revenues and give partners 55% of the total, with the money paid out to each partner based on how much time viewers spend watching a channel. Creators are required to participate in the subscription offering – if they don’t, all of their videos will be set to private.

The ad-free option expands on YouTube’s limited Music Key offering, which launched last year, bringing the subscription model to all videos and paving the way for YouTube to compete with TV and movie streaming services like Netflix. The premium service will also be seen as the latest challenger in the growing music streaming market, joining Jay Z’s celeb-endorsed Tidal and market leader Spotify along with the forthcoming Beats offering from Apple. Despite being a relative latecomer, YouTube is still by the far the biggest source for music streaming globally – largely because it’s free.

Earlier this year the site also launched YouTube For Artists to help musicians gain insight into who is viewing their videos and where.



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