According to information revealed by YouTube CEO Salar Kamangar a couple of days ago, You Tube plans to get more revenue aside from piles of money that advertisement brings to the company. You Tube official calculated that video industry has, regardless if its is online or offline, 40% of the revenue earned comes form advertising while 40% are brought in the company vaults from subscriptions, and only the remaining 20% come from sales and rentals.
Following this model, with the due alterations, Salar Kamangar admitted that You Tube plans to tap into a new opportunity, by enabling the content providers to develop their own content and to sale it via subscription programs. For the moment, You Tube CEO explained that this is only a plan analyzed by the company strategists and there is no new product to be announced at this time.
However, in the near future we’ll hear more about it. “We’re a media platform want to be biz model than media partners demand,” said Salar Kamangar. This is not the first time when the media and the public gets such an information. In 2009, Eric Schmidt made a similar prediction about You Tube earning revenue from subscriptions “very, very soon.” At the time, Eric Schmidt explained the earnings strategy “With respect to how it’ll get monetized, our first priority is on the advertising side. We do expect over time to see micro-payments and other forms of subscription models coming as well.”