October 10, 2011

YouTube needs a premium option

By Marc Bullard

You know what would be nice with YouTube, a premium feature. An option to maybe pay a small monthly fee in order to remove all of the ads that show up on almost every video you watch on YouTube. If this option was available, I’d seriously consider paying for it. Something around $2-$5 per month would be perfect. YouTube could monetize their site without subjecting all of it’s users to go through the annoying ads every couple of videos. Not only would this allow for some great playlists, but it would help YouTube get dedicated users to log in. Logging in would help YouTube figure out demographics of who is watching what. Here’s how I would like it broken down for YouTube users:

1. Non Logged in user – this user just goes to YouTube in order to watch a couple of videos and go on with their day. They don’t want to comment, they don’t want to upload, they don’t want to be a part of the community at all. The non logged in user would also see ads as often as YouTube wanted to show them.

2. Logged in but non paying user – this user wants to watch videos but also comment, upload, create playlists, and generally be part of the YouTube community. If a user is logged in, this helps YouTube figure out demographics for related videos, video popularity, and targeted ads. The logged in but non paying user would still see ads, but maybe not as many as option 1; however these ads would be targeted to each user’s interest and therefore provide important information to advertisers that want to place ads in specific demographics.

3. Premium, paying user – this user would pay a small monthly/annual fee to use all of YouTube’s features minus the annoying ads. YouTube is still making money and the user is happy. Everybody wins. The premium option could also provide a discounted rate for rentals from YouTube.

Which brings me to another point. Oh yeah, YouTube is now charging for rentals. Just like Netflix, YouTube has movies for rent. How many people actually knew this, and more importantly, how many people are actually using this service? I know, I didn’t know about it either but hey, they’re trying. Unfortunately for them, Netflix and Amazon are providing the same feature but with added incentive. Netflix has a larger library and Amazon offers free 2nd day shipping when you sign up to their streaming service (which is cheaper than Netflix). So YouTube has a tough road ahead of them, a premium monthly option could help keep them competitive.