YouTube will soon have videos you need to pay to see.
Reports from tech blog re/code indicate that the video streaming giant is working on a slate of 'premium' online programming that will be a part of its long rumored subscription service which is set to be unveiled at an event in Los Angeles on October 21.
Rumblings of a paid, ad-free version of YouTube have been around for quite some time. Last week, The Wall Street Journal reported that several big media companies had already signed up for the new venture.
Time Warner's Turner cable unit, 21st Century Fox's Fox Sports, A+E Networks Inc., and Comcast Corp.'s NBCUniversal are some of the names already aboard with the likes of The Walt Disney Company also in talks to join.
The WSJ broke down how exactly these media companies and content creators will divide the subscription revenues.
'Under YouTube's deal terms, content creators collectively will get 55% of the overall subscription revenue generated. Each individual creator or company will get a slice of that money based on the amount of time users spend on their videos, according to people briefed on the terms.' Says the report.
A previous re/code report said that the service would cost $10 a month.
"We are progressing according to plan to provide fans more options in how they enjoy content on YouTube," Said YouTube in a statement to the WSJ. "We have support from the overwhelming majority of our partners, with over 98% of content watched on YouTube covered by agreements, and more in the pipeline about to close."
Users reluctant to fork over money for this new service need not worry; because Youtube has confirmed that a free, ad-supported version of the site will still exist as usual.
