YouTube, projected to generate nearly $6 billion in ad revenue this year, is considering launching a subscription-video service that would strip out advertising, according to CEO Susan Wojcicki.
The Google-owned service is easily the No. 1 Internet video destination in the world, serving more than 6 billion hours of video monthly. But YouTube is eager to diversify its revenue base by layering in subscriptions — a dual-revenue model established by cable TV and since employed by other businesses like Spotify.
“We’re early in that process, but if you look at media over time, most of them have both ads and subscription services,” Wojcicki said at the Code/Mobile conference Monday night. “YouTube right now is ad-supported, which is great because it has enabled us to scale to a billion users (per month), but there’s going to be a point where people don’t want to see the ads.”
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