At Re/code’s Code/Mobile Conference last Monday, Youtube CEO Susan Wojcicki revealed the online video site is exploring a paywall option. The paywall will allow interested users to access Youtube content without any ad interference. Though it is unclear on how and when Youtube will be launching this type of service, the company is definitely looking to expand beyond its traditional user-generated content. This is evident when the company announced its plans to launch a new ad-free subscription music service back in June, and a investment campaign for original TV-quality shows back in September.

Susan Wojcicki, CEO of Youtube
Image Source: Re/code

I think an ad-free paywall would be interesting. I’m sure many current users find it frustrating to be forced to watch a 30-second ad just to see a 1-minute cat video. The paywall will also be an extra channel for Youtube to generate revenue. For the past few years, Youtube has been trying to establish itself as premium service to compete against the likes of Netflix and Amazon’s Playbook. With the additional revenue, Youtube could be more flexible in creating more original premium content. Of course, just having the only benefit of “ad-free” won’t be a good enough incentive for users to pay. If Youtube can provide exclusive entertainment like movies or shows on top of the ad-free benefit that only paid users can access, then the paywall would be a worthwhile option. This also only holds if the company keeps its current free model separately. Otherwise, its user base will definitely decrease.