YouTube Red: What You Need to Know

YouTube unveiled its long-awaited subscription service today at an event at its YouTube Space in Los Angeles.  Dubbing YouTube Red, the advertising-free option will go live one week from today, Oct. 28, across mobile phones, tablets, desktops and connected TVs.

Here's what you need to know about the new service:

It's YouTube Red, not to be confused with RedTube. 

 YouTube Red points to the brand's association with the color, which is the only one in the YouTube logo aside from black and white. This makes sense, except there's one problem.

It sounds a lot like a well-known porn site.

 

This puts YouTube in competition with SVOD players

YouTube is banking on obsessive users to plop down $9.99 a month ($12.99 if you're an Apple user) to be liberated from ads. (Same concept of what Hulu is doing.)

YouTube Red subscribers get access to a new version of YouTube music

YouTube Music will have a free standalone app and will be ad-free for YouTube Red subscribers. YouTube Music also works with Google Play Music, meaning subscribers of either service get access to both.

YouTube Red will give scripted shows to its unscripted stars

Seriously don't understand why people watch PewDiePie - and he's YouTube's biggest star. He'll have a new show on YouTube Red called Scare PewDiePie.

Seriously don't understand why people watch PewDiePie - and he's YouTube's biggest star. He'll have a new show on YouTube Red called Scare PewDiePie.

Some of the platform's biggest creators, including PewDiePie*, Lilly Singh, The Fine Bros. and Toby Turner, are among the YouTube stars producing scripted series for Red. The shows will begin to roll out early next year. YouTube will pay out the majority of the revenue it gets from its subscriptions to its partners. Roughly 98 percent of its creators have signed on for Red.

Okay, that all sounds great right?  Is this good for creators though? The people putting this content on YouTube

How does it effect them?

TechCrunch reports that “YouTube confirmed any “partner” creator who earns a cut of ad revenue but doesn’t agree to sign its revenue share deal for its new YouTube Red $9.99 ad-free subscription will have their videos hidden from public view on both the ad-supported and ad-free tiers.”

That means just about any YouTuber whose channel is popular enough to earn them money through ads will be forced to choose between falling in line with the new revenue-share model and not having their videos distributed through YouTube at all.

It’s unclear how much of a cut creators will get through the new program. Chief Business Officer Robert Kyncl said YouTube will pay them “the vast, vast majority of revenue” but didn’t specify an exact percentage.

Payouts will be determined by watch time, so creators with longer videos could stand to earn more than those who make short clips.

The deal doesn’t apply to amateur users who don’t yet have a major following on YouTube.  It will be interesting to see if less people use YouTube. Users are creators and users as just people whom watch it in general because of this change.