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YouTube Red
File:YouTube Red.png
Type of site
Paid subscription service
FoundedNovember 2014
Headquarters
United States
Area servedWorldwide (except blocked countries)
IndustryInternet
ParentYouTube, Google
URLYouTube Red
LaunchedNovember 12, 2014; 9 years ago (2014-11-12) (as Music Key)
October 28, 2015; 8 years ago (2015-10-28) (as YouTube Red)
Current statusActive

YouTube Red is a monthly-paid subscription service by YouTube, exclusively for users in the United States. It provides advertising-free streaming of videos hosted by the service, offline and background playback of videos on mobile devices, and access to advertising-free music streaming.

It was originally launched on November 2014, offering only ad-free streaming of music and music videos from participating labels on YouTube and Google Play Music.[1][2][3] The service was then revised and relaunched as YouTube Red on October 28, 2015, expanding its scope to offer ad-free access to all YouTube videos, as opposed to just music.[4]

Besides ad-free streaming, YouTube Red has also participated with major networks and certain YouTube celebrities to offer "YouTube Red Originals", movies and television shows exclusive only to Red members, such as the reality series, Scare PewDiePie.[4]

History

The service was first unveiled in November 2014 as Music Key, serving as a collaboration between YouTube and Google Play Music, and meant to succeed the former's own subscription service. Music Key offered ad-free playback of music videos from participating labels hosted on YouTube, as well as background and offline playback of music videos on mobile devices from within the YouTube app. The service also included access to Google Play Music All Access, which provides ad-free audio streaming of a library of music.[5] Alongside Music Key, Google also introduced tighter integration between Play Music and YouTube's apps, including the sharing of music recommendations, and access to YouTube's music videos from within the Play Music app.[2][3] Music Key was not YouTube's first foray into premium content, having launched film rentals in 2010,[6] and premium, subscription-based channels in 2013.[7]

During its invite-only beta, Music Key faced mixed reception due to the limited scope of the offering; YouTube's chief business officer Robert Kyncl explained that his daughter was confused over why videos of songs from Frozen were not "music" in the scope of the service, and thus not ad-free.[4] These concerns and others led to a revamping of the Music Key concept to create YouTube Red; unlike Music Key, YouTube Red was designed to provide ad-free streaming to all videos, rather than just music content. This shift required YouTube to seek permission from its content creators and rights holders to allow their content to be part of the ad-free service; under the new contract terms, partners would receive a share of the total revenue from YouTube Red subscriptions, as determined by how much their content is viewed by subscribers.[4]

YouTube also sought to compete against sites such as Hulu and Netflix by offering original content as part of the subscription service, leveraging prominent YouTube personalities in combination with professional producers. Robert Kyncl acknowledged that while many of YouTube's prominent personalities had built their followings and created content while operating on a "shoestring budget", he admitted that "in order to scale up, it takes a different kind of enterprise, a different kind of skill set; there is [a] story-telling skill set, there is showrunning, etc."[4][8]

On October 21, 2015, it was announced that the service would be re-launched in a revised form as YouTube Red on October 28, 2015, expanding its scope to offer ad-free access to all YouTube videos, as opposed to just music, as well as premium content produced in collaboration with notable YouTube producers and personalities.[4] Prominent YouTube personality PewDiePie, who is involved in one of the planned originals for the service,[8] explained that the service was meant to mitigate profits lost due to the use of ad blocking.[9]

Features

A YouTube Red subscription allows users to watch videos on YouTube without advertisements across the website and its mobile apps, including the dedicated YouTube Music and YouTube Gaming apps. Through the apps, users can also save videos to their device for offline viewing, and play them in the background.[2][3] YouTube Red will also offer original, premium content exclusive to subscribers, the content will be created and published by YouTube's largest channels and creators.[10] The service also offers ad-free music streaming through the Google Play Music All Access service.[4]

Content

YouTube Red will offer original films and series; they will be produced in collaboration between professional studios and existing YouTube personalities.[4] Content in development for or to be available on YouTube Red includes:

On December 3, 2015, The Wall Street Journal reported that Google was pursuing deals to stream other film and television series for YouTube Red subscribers—a move that would put the service in more direct competition with services such as Amazon Video, Hulu, and Netflix.[11]

Reception

Licensing terms

In May 2014, prior to the official unveiling of the Music Key service, the independent music trade organization Worldwide Independent Network alleged that YouTube was using non-negotiable contracts with independent labels that were "undervalued" in comparison to other streaming services, and stated that YouTube threatened to block a label's videos from public access if they did not agree to the new terms. In a statement to the Financial Times in June 2014, Robert Kyncl confirmed that these measures were "to ensure that all content on the platform is governed by its new contractual terms." Stating that 90% of labels had reached deals, he went on to say that "while we wish that we had [a] 100% success rate, we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience."[12][13][14][15] The Financial Times later reported that YouTube had reached an aggregate deal with Merlin Network—a trade group representing over 20,000 independent labels, for their inclusion in the service. However, YouTube itself has not confirmed the deal.[3]

Following the unveiling of YouTube Red, it was stated that these same contractual requirements would now apply to all YouTube Partner Program members; partners who do not accept the new terms and revenue sharing agreements related to the YouTube Red service will have their videos blocked entirely in regions where YouTube Red is available.[16] The YouTube channels of ESPN were a notable party affected by the change; a representative of ESPN's parent, The Walt Disney Company, stated that conflicts with third-party rightsholders in regards to sports footage contained in ESPN's YouTube videos prevented them from being offered under the new terms. A limited number of older videos remain on ESPN's main channel.[17]

Similarly, a large amount of content licensed by Japanese and Korean record labels was also blocked from access in the United States following the launch of the service. The Japanese music industry has traditionally shown a stricter stance towards copyright enforcement and a resistance to most digital distribution of music. It was believed that the ability to download videos for offline viewing was a subject of hesitation for their participation in the program.[18][19][20]

References

  1. ^ "YouTube unveils Music Key subscription service, here's what you need to know". Engadget. AOL. Retrieved 12 November 2014.
  2. ^ a b c "YouTube announces plans for a subscription music service". The Verge. Retrieved 12 November 2014.
  3. ^ a b c d e f g h i j "YouTube Launches 'Music Key' Subscription Service with More Than 30 Million Songs". Variety. Retrieved 12 November 2014.
  4. ^ a b c d e f g h "Red Dawn: An inside look at YouTube's new ad-free subscription service". The Verge. Vox Media. Retrieved 21 October 2015.
  5. ^ "Google Play Music subscribers will get free access to YouTube Music Key". PC World. Retrieved 16 November 2014.
  6. ^ Miguel Helft (January 20, 2010). "YouTube takes a small step into the film rental market". The New York Times. Retrieved August 13, 2010.
  7. ^ "YouTube's 30 Pay-Channel Partners Run from Kid Fare to Cage Matches". Variety. Retrieved 29 August 2015.
  8. ^ a b "YouTube Red Unveiled: Ad-Free Streaming Service Priced Same as Netflix". Variety. Retrieved 21 October 2015.
  9. ^ Shaul, Brandy (2015-11-02). "PewDiePie on YouTube Red: 'Adblock Has Actual Consequences'". SocialTimes. Mediabistro Holdings. Retrieved 2015-12-01.
  10. ^ Josh Constine. "YouTube Red, A $9.99 Site-Wide Ad-Free Subscription With Play Music, Launches Oct 28". TechCrunch. AOL. Retrieved 21 October 2015.
  11. ^ "YouTube Seeks Streaming Rights to TV Shows, Movies". The Wall Street Journal. Retrieved 4 December 2015.
  12. ^ "YouTube will block videos from artists who don't sign up for its paid streaming service". The Verge. Retrieved June 17, 2014.
  13. ^ "YouTube subscription music licensing strikes wrong notes with indie labels". The Guardian. Retrieved June 17, 2014.
  14. ^ "Talks with indie labels stall over YouTube music subscription service". The Guardian. Retrieved June 17, 2014.
  15. ^ "YouTube to block indie labels who don't sign up to new music service". The Guardian. Retrieved June 17, 2014.
  16. ^ "YouTube Will Completely Remove Videos Of Creators Who Don't Sign Its Red Subscription Deal". TechCrunch. AOL.
  17. ^ "ESPN is shutting down its YouTube channels over paid subscriptions". The Verge. Retrieved 23 October 2015.
  18. ^ "CD-Loving Japan Resists Move to Online Music". The New York Times. September 16, 2014. Retrieved 25 January 2016.
  19. ^ "YouTube blocks Japanese contributors' content for refusing to use its paid version". Networkworld. IDG. Retrieved 25 January 2016.
  20. ^ "Japanese music and vocaloid content disappears as YouTube rolls out new paid service". RocketNews24. Retrieved 25 January 2016.
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