Home Apps YouTube’s Premium Version Gains Popularity And Boosts Google Revenue

YouTube’s Premium Version Gains Popularity And Boosts Google Revenue

1
SHARE

YouTube, apart from delivering the services like it normally does on the web, also has a premium service that it dedicates to people who are willing to pay for its services in order to access  an ad free high-definition videos viewing experience. This paid service is known as YouTube Red.

The YouTube Red service first came into existence in October 2015, when Google surveyed the market to find that there was a huge number of people who were so fond of the service that were willing to go to any extent to make it ad free.

This seemed like a big opportunity for the company to look after its consumers request and at the same time keep the money flowing even without the ads.

This made them go premium on the service. Interested user began to sign up and are being charged $10 every month for the ultimate ad free experience.

A recent report launched over the internet quoted the theory by Credit Suisse a financial analysis company, that said to its clients on January 12th, Google would be able to earn almost 12 times as much as it earning now from YouTube with new YouTube Red service.

The revenue alone even with moderate sign ups would amount to $1 Billion in 2016 alone. If this growth rate continued then by 2022 this could amount to 4.5% of Google’s total income.

The analysis firm’s report was so convincing that the prices of the shares in Alphabet which is the holding company for Google saw the price of each class A share rise from $850 to $900 as compared to the $750 that it is trading in now.

The income from this service would be high because a subscription business according to analysts requires the least investment and running costs.

This report was made keeping in mind the fact that there would be few users who would sign up for this feature.

Even if the numbers do not rise and the current strength of users logged in to YouTube Red remains static the company would still make the profits as mentioned above because it hardly needs to invest anything.

You will be surprised that the analysts have made these profit reports considering that only 3 % of the 1 Billion users that YouTube has will sign up for the Red service.

1 COMMENT

Comments are closed.