Home News Paid Channels services are being discontinued by YouTube and The company is trying to expand to sponsorship model

Paid Channels services are being discontinued by YouTube and The company is trying to expand to sponsorship model

by Harikrishna Mekala

YouTube first launched paid channels in 2013 as its very initial move into the subscription business. Initially started with a few dozen content allies including the Sesame Workshop, NatGeo Kids, and DHX Media, paid tubes allowed producers to set their own price for subscriber-only channels on the service.

However, there remained signs early on that YouTube’s public didn’t care much for these paid channels, and the action has since been governed by YouTube’s other monetization options, including the site-wide YouTube Red signature service. At the last count, less than 1% of producers were making use of paid channels, according to YouTube.

One of the means YouTube is now attending to replace paid channels is a patronage model. YouTube started testing sponsoring with select YouTube Gaming creators in late 2015 and is now making this extra revenue stream available to all of YouTube Gaming. Users can sponsor a producer for $4.99 a month, and in answer get custom chat badges and custom emoji as well as access to a sponsor-only chat. Creators can even provide them additional perks through third-party integrations.

YouTube product manager Barbara Macdonald said in a blog post-Tuesday that support has been a huge boon for some of the producers who were part of the test phase: “Rocket Beans earned 1,500 sponsors on their first day. And ONE_shot_GURL’s monthly celebratory wall of supporters is getting so full, it’s running out of the room.”

If all goes well, these kinds of support may one day also be possible to all of YouTube’s creators. The video setting is starting to test it with a small group of producers within the main YouTube app now, also offering them the opportunity to sell sponsorships for $4.99 a month.

In addition to these cyclical sponsorships, YouTube will also remain to offer creators the ability to sell so-called Super Chats.

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