The New York Post recently reported that YouTube is considering implementing a subscription billing model for premium users. By using this a membership-based video service, paying clients will be able to access more high-quality content, similar to what newspapers have done in the past.
"We have long maintained that different content requires different types of payment models," one YouTube spokesman told the Post. "The important thing is that, regardless of the model, our creators succeed on the platform and viewers find more content to watch. There are a lot of our content creators that believe they would benefit from subscriptions."
The high-end subscription model would provide premium sports, music and entertainment content for paying customers. Currently, YouTube has more than 800 million users and generates between $2 billion and $3 billion in profits annually, according to the news source. By implementing a subscription process, the company may be able to generate recurring revenue more easily.
In a separate report, Inc. CEO Project principal Jim Schleckser said recurring is important because it allows organizations to build profits without taking away time and money from a company's most important initiative: expanding the business.