YouTube is set to go into direct competition with digital streaming services such as LoveFilm and Netflix with the launch of pay-per-view channels.
The Wall reports that the video sharing platform is in talks with content providers to produce content which will be available for between $1-$5 a month.
The Google-owned website reported record annual revenues of $50bn (£32bn) last week, and clearly sees a subscription model as another stream of income.
YouTube appears to have NetFlix in its sights, which itself has recently been branching out into funding its own original programme. This year it will broadcast the Kevin Spacey-produced House of Cards and a new season of cult comedy Arrested Development.
Not only will streaming services be challenged by YouTube’s move, but traditional cable television providers could be facing competition. Chief executive Salar Kamangar told the AllThingsD conference last year that there is potential to encourage smaller cable channels to branch out into online broadcasting, separating them from a crowded and ruthlessly competitive market.
(Source: The Wall)
