YouTube planning ad-free video and offline viewing in paid monthly subscription service

YouTube is currently planning a paid monthly subscription service that offers ad-free videos and gives users the opportunity to view videos offline, Google announced on 8 April.

Details of the new service were laid out in a letter sent to members of YouTube's Partner programme, which enables video content creators on the video sharing website to earn revenue from ads and merchandise.

Under changes to the terms of the Partner programme that are due to go into effect on 15 June, YouTube will pay its content creators 55% of the total net revenues from subscription fees.

"Launching a new paid offering will require us to update your terms through your Creator Studio Dashboard – a process that should feel familiar to anyone who went through a similar process three years ago when we began distributing and monetising your content on mobile devices," the letter reads.

"Today, mobile represents over half of all watch time and mobile revenue is up 200% in the last year. Just as with mobile, we're confident this latest contract update will excite your fans and generate a previously untapped, additional source of revenue for you."

The plans were not meant to be made public and so there is no word on when the subscription service will launch or how much it will cost.

A spokesperson for YouTube told IBTimes UK: "While we can't comment on ongoing discussions, giving fans more choice to enjoy the content they love and creators more opportunity to earn revenue are always amongst our top priorities."

YouTube's subscription service will be entering a market that already has the likes of Netflix and Hulu offering video streaming service, although their content tends to revolve around movies and TV shows rather than music.

On 9 April, a new video platform called Oz is launching that enables video content creators to charge users for access to exclusive content like behind-the-scenes footage of a band tour or live outtakes, and the videos are accessible on all devices.

Even Spotify, which provides a free service with ads or a monthly subscription service with offline listening and no ads, is considering offering video streaming, according to a recent internal user survey seen by IBTimes UK.