Inspired by Karsyn Aquilini’s blog post   

googleyoutuve

Source: http://www.searchandmore.co.uk/news/tube-helps-google-top-1-billion-mark/

Since Google’s acquisition of YouTube in 2006, it has evolved to the most popular video streaming and sharing site in the world. With the introduction of advertisements, they have been able to bring in $4 billion in revenue as of 2014. With this enormous amount of revenue, it is a shock that they are not producing any profit. They have been focusing on the satisfaction of their customers over profitability.

YTR

Source: http://www.adweek.com/socialtimes/pewdiepie-on-youtube-red-adblock-has-actual-consequences/629327

With the introduction of YouTube Red, a new premium service, Google has been able to enhance the customer experience while also increasing their revenue in hopes of creating a profit. At a cost of $9.99 on desktop or Android and $12.99 on iOS, this subscription will allow the customer to enjoy an ad-free experience while also experiencing a new feature that allows them to save videos on their device and to view exclusive original shows. They will also get access to the new service YouTube Music that filters out non-music results.

Apple-Music-vs-Spotify_thumb800

Source: http://www.macworld.co.uk/review/music/apple-music-vs-spotify-comparison-review-3615611/

This will be an interesting risk that Google is taking. YouTube has been a free service since its inception and although it will still be available for free, the adoption rate for the premium feature might be slow. With the price of $9.99, they will be competing against other media subscriptions such as Apple Music and Spotify. Their main point of difference from these services will be the ability to watch and save videos in addition to stream music.

KtvQRlnS Source: http://tuoitrenews.vn/business/10834/google-asks-us-court-to-allow-data-query-release

 

YouTube Red launched on October 28, 2015 in the United States and will release to other countries in the near future.

 

Works Cited:
Mitroff, Sarah. “Everything You Need to Know about YouTube Red.” CNET. CNET, 28 Oct. 2015. Web. 04 Nov. 2015. <http://www.cnet.com/how-to/youtube-red-details/>.
Mogg, Trevor. “YouTube: A Billion Users and Still No Profit.” Digital Trends. N.p., 27 Feb. 2015. Web. 04 Nov. 2015. <http://www.digitaltrends.com/web/youtube-a-billion-users-and-still-no-profit/>.
Tweedie, Steven. “Google Just Announced a Netflix-killer Called YouTube Red.” Business Insider. Business Insider, Inc, 21 Oct. 2015. Web. 04 Nov. 2015. <http://www.businessinsider.com/youtube-red-ad-free-video-subscription-service-costs-999-per-month-2015-10>.