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April 16, 2009 2:51 PM PDT

Google bringing pay-per-view to YouTube

by Stephen Shankland
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So far, YouTube has been a free, advertising-supported service, but Google plans to build payment mechanisms into its video-sharing site.

"With respect to how it'll get monetized, our first priority is on the advertising side. We do expect over time to see micropayments and other forms of subscription models coming as well," said Google Chief Executive Eric Schmidt after the company reported first-quarter profits Thursday. "We'll be announcing additional things in that area literally very, very soon."

The change in tactics will mark a new era for Google's attempt to make money from YouTube. The service is tremendously popular, but also tremendously expensive to operate, and Google has been working hard for months to come up with a more successful financial formula for sharing video.

Schmidt's words came at the same time Google is signing a partnership to show Sony Pictures' full-length movies and build a section of YouTube devoted to professionally made content.

Google has had fractious relations with companies that produce video, but that's changing now, Schmidt said. "We are making very good progress now with small, medium, and even large-scale studios," he said.

Stephen Shankland writes about a wide range of technology and products, but has a particular focus on browsers and digital photography. He joined CNET News in 1998 and since then also has covered Google, Yahoo, servers, supercomputing, Linux and open-source software, and science. E-mail Stephen, or follow him on Twitter at http://www.twitter.com/stshank.
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Add a Comment (Log in or register) (9 Comments)
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by indiemixer April 16, 2009 4:09 PM PDT
The only way I would like this is if it were a separate website. This is just terrible.
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by QMT April 16, 2009 4:38 PM PDT
Wasn't there an axiom some time ago that said a free site going to a subscription model instantly loses 90% of its audience?
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by Shankland April 16, 2009 6:28 PM PDT
I'm sure there's plenty of variation, but often, yes. But bear in mind here that there may be content you can't get elsewhere, that people have shown a willingness to pay for content through services such as cable TV and Netflix, and that Apple's iTunes market has begun training people to buy content online.
by SlimGem April 16, 2009 7:28 PM PDT
"... instantly loses 90% of its audience?"

Yep. Buh-bye You Tube.
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by Mergatroid Mania April 16, 2009 9:12 PM PDT
I don't know about everyone else, but paying for movies I get from other sources already isn't on my radar. How many movie sources do they think we need? How many bills for movies do they think we need? Since they're adding it to their present site, does this mean a slower You Tube?

Oh well...
I'm sure some other site will be able to take You Tube's place, I'll go there.
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by nickbarron April 20, 2009 5:49 PM PDT
This just proves my point, that there's room for the right person to build their own media empire. [CNET editors' note: URL removed.]
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by Sabreblade1000 April 21, 2009 2:29 PM PDT
I have to agree...if YouTube goes pay per view, it'll be quickly replaced.
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by pienmashfilms September 19, 2009 1:36 PM PDT
We're an indie film production co based in the UK. At the moment we're paying a £7pm subscription to Maxcast (Nuskin) to provide our feature length films on pay-per-view which we've attached to our website and wordpress pages. If YouTube would consider something similar to allow indie film producers to sell films on pay-per-view through YouTube broadcasting platforms we think it would be popular as a lot our audience base/followers are already hooked in. Take a look at our pay-per-view page for further information: http://www.pienmashfilms.com/page15.htm
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by yeesnaw September 29, 2009 6:16 AM PDT
Pfft, if youtube dose go PPV then i guess we always have alternatives, the closest being metacafe.

i don't think youtube will be PPV like we are lead to beleive, members could receive aditional benifits over others as such.
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