YouTube subscription may change cable TV market, CEO says

YouTube recently announced that it may soon begin charging users access to premium content. The new subscription service would help YouTube generate recurring revenue while also paving the way for future cable TV programmers, giving them a unique opportunity to shift away from complex and sometimes unsatisfactory traditional bundles, Google vice president of video and YouTube CEO Salar Kamangar said, according to Reuters.

This advent of subscription services would allow cable TV programmers to offer a variety of selections to users, Kamangar said, according to the news source. These resources could potentially turn into targets for YouTube and other subscription video services to expand offerings.

“We don’t have anything to announce now,” Kamangar said, according to Reuters. “It is something that’s really important to a lot of our top existing content creators as well as ones that aren’t on YouTube today, so we’re taking it very seriously and we’re thinking about it very carefully.”

By providing subscription services, organizations can generate recurring revenue, while also creating loyal customers, giving them a competitive advantage over rival companies.

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The Forrester Wave: Subscription Billing Platforms, Q4 2015

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