YouTube Red: Youtube Unveils New Paid Subscription Option without Ads

By Reuters
YouTube
People are silhouetted as they pose with mobile devices in front of a screen projected with a Youtube logo, in this picture illustration taken in Zenica October 29, 2014.  REUTERS/Dado Ruvic

Alphabet Inc's YouTube will launch a $10-a-month subscription option in the United States on Oct. 28 that lets viewers watch videos from across the site without interruption from advertisements, the company said on Wednesday.

Starting early next year, the service called YouTube Red will add exclusive shows and movies from top YouTube creators including PewDiePie, Lilly Singh and The Fine Brothers.

"Consumers are embracing paid subscriptions of ad-free content at an incredible pace," Robert Kyncl, YouTube's chief business officer, said at an event at YouTube's production space in Los Angeles.

The effort offers a new source of revenue for YouTube and its video creators. Rival streaming sites such as Vessel and Interactive Corp's Vimeo are luring online stars to their paid offerings, which provide creators a larger cut of revenue than they typically receive from YouTube's ad-supported videos. Facebook also is taking steps to boost video viewership on its site.

YouTube will continue to offer its free, ad-supported service, which has more than 1 billion viewers around the world.

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