To go against the tide, YouTube would reduce its original content plans. According to a report from Hollywood Reporter, the online video giant will reduce the original scripted programming volume it produces by 2020. YouTube's new Single Slate strategy will combine ad-supported content with a subscription, which which should allow its original programs and films to become free for all to watch.
"As for 2019, we will continue to invest in scripted programming and change the format so that our YouTube Originals ads are ad-supported to meet the growing demand for a more global fan base," said a YouTube representative. Variety. "This next phase of our original strategy will expand the audience of our original YouTube creators and provide advertisers with incredible content that will reach the YouTube generation."
YouTube Originals is one of many features included in the company's $ 12 per month premium subscription service. The company has somewhat consolidated its paid offerings when it launched the new YouTube Music subscription service in May. Users can pay $ 10 a month for music, which is similar to Spotify and Apple Music. In contrast, YouTube Premium costs $ 12 per month and includes access to all Music features in addition to the original, streaming advertising-free videos across YouTube, downloading videos and listening in the background.
Pay services have been at the heart of YouTube's concerns over the last few years, as it sought to compete with video and music delivery companies, including Spotify, Netflix, Hulu, Apple, and Amazon. YouTube has never revealed the size of its subscription activity (which also includes YouTube TV, yet another monthly subscription service broadcasting live TV live), but its original content is n & # 39; It has never received the same public praise or popularity as the others. While Netflix has Strange things and Amazon has The wonderful Mrs Maisel, YouTube Premium has not generated more success than the Karate Kid after Cobra Kaiwho had a first season generally well received.
While YouTube will produce original content already scheduled, including the upcoming season Cobra Kaia "significant reduction in the budget" indicates a general slowdown. YouTube's original content budget has never been as high as that of other companies: Netflix and Apple each year commit to generating billions of original content, but YouTube does not put hundreds of millions of dollars only for its originals and other exclusive projects.
But with two billion users around the world, YouTube has a considerable audience for ad-supported content. Changing the focus to adopt this model can increase the number of viewers for each original show and each movie.
But the company does not abandon the paywalled content. The reports suggest that YouTube could broadcast scripted episodes to every weeklies, while Premium subscribers can gorge on any episode as they see fit. The company may also offer exclusive bonus content or director film cuts only to paying subscribers.