New to Corn, the destiny of YouTube Premium at the edge of the horn?

KOMPAS.com – The YouTube Premium or YouTube Red service is only six months old since its launch in May 2018. To use this ad-free service, users must spend US $ 12 (about Rp 172,000) per month.

YouTube Red's customers can enjoy YouTube Music Premium, download videos, and watch 100 original content on YouTube, such as "Cobra Kai" and "Origin", which is the backbone of YouTube Premium.

But the last decision of YouTube seems to indicate that the premium service is on the brink.

YouTube has just announced that the YouTube Red service can only be used for free with advertising subsidies starting in 2019. The reason is that original YouTube content can be used more by users.

The number of users of free services on YouTube would reach 2 billion, which is the main support for YouTube's revenue, which reaches billions of dollars a year.

Also read: Official, YouTube Paid is subject to 140,000 rupees a month

Unfortunately, YouTube does not disclose the number of YouTube Premium customers to date. This change in strategy raises suspicions if YouTube Premium has not been able to cover the costs of the original YouTube program, which would have reached hundreds of millions of dollars.

But YouTube representatives were reluctant to react to speculation that the YouTube bonus would be removed directly.

"YouTube's premium proposals are always the same." Users who want to watch offlineYouTube-free and ad-free music services will continue to be YouTube Premium. Including watching the original content of YouTube without advertising, "replied the representative of YouTube quoted KompasTekno of Business InsiderFriday (30/11/2018).

With the introduction of original YouTube content into free services, viewers must view advertisements like any other free YouTube content. This program will come into effect in 2019 and should be adjusted again with the budget of the original content program.

The potential to derive advertising revenue from advertisements through the original content is indeed quite unfortunate if it is not used given the huge user base.

"In the next phase of the initial strategy, we will increase the number of original YouTube viewers and provide advertisers with exceptional content that will reach the YouTube generation," said the YouTube representative.

Whether it's a coincidence or not, YouTube's strategy shift came after Apple announced the launch of streaming services with original content in March 2019. This content could be used for free by all product users. Apple.

Some observers have said that YouTube has a hard time prioritizing paid services rather than relying on free services that benefit from advertising. But given the decision on the new original content, it seems that free services are always more commercially attractive.

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