14 DAY TRIAL // YouTube is working overtime to get those revenue streams flowing and, while Google says it's on track to profitability at a not-so-distant point, the video site is not quite there yet. It's been pursuing several options, aside from the usual variety of advertising models, and is now even considering introducing a subscription model for some content. Reuters reports that not only paid content will make it onto the site, monthly subscriptions may be introduced as well to appease content owners who are wary of ad-based revenue.
The video site is said to be already in talks with several Hollywood studios and TV networks to introduce full-length movies and TV shows to the site in a pay-per-stream model. These talks are at an early stage, but the episodes may come in at $1.99, the same price Apple and Amazon ask for downloads.
YouTube has been struggling to secure more professional content which is much more monetizable than the amateur short clips which make up the vast majority of its inventory. However, it's having a hard time convincing content owners that advertising is the way to go and most are reluctant to post their shows online for free for fear of eating into DVD sales and cable subscription revenue.
So Google is making concessions trying to meet the content owners half way, maybe more than that actually. The latest move would be paid subscriptions to certain content which would put at ease the hearts of the content holders, perhaps unjustifiably so. There aren't any clear plans as to when or even if the subscriptions will be put in place, but it is one of the options being considered at the time.
Still, Google insists that advertising will be the bulk of the revenue and that it's still the main focus for the video site. Coming from Google, one of the biggest advertising companies in the world, that's hardly a surprise. After the success of Hulu though, it's clear that professional content is a very important asset, and it looks like YouTube knows this as well, after the launch of the dedicated music video site Vevo in partnership with the major music labels.