YouTube Red: Google's Solution to Ad Block

 What is YouTube Red ?

You Tube Red is a paid membership that gives you an amplified video and music experience across YouTube. It is currently available in the U.S., but Google said they are working on expanding to more locations. 

There are several great benefits included in your YouTube Red membership:  
Users have access to watch Ad-free videos  across YouTube when you’re signed in to your YouTube Red account
This includes ads before and during a video, as well as banner ads, search ads, and video overlay ads. You can save off-line videos and play lists to watch off-line when you aren’t connected to the internet. Save off-line is available on YouTube and YouTube Gaming mobile apps when you are signed in with your YouTube Red membership account. 

​For access, You must be signed into your YouTube Red account to save videos to watch offline.​Some actions, like commenting and liking, are not available while viewing videos offline.​Videos will remain off-line for up to 30 days. ​Some content may not be available off-line when you reconnect to the Internet due to content restrictions from video creators. ​If your device loses connectivity while saving a video or playlist off-line, it will automatically resume when you reconnect to a mobile or Wi-Fi network

The service also allow you to play videos while using other apps or when your screen is off. Background play is available on You Tube and YouTube Gaming mobile apps.  

Google Solving the problem of Ad blocking Usage on YouTube

With the growing concern about ad blocker, and the possibility of YouTube income shrinking, Google, now Alphabet is using YouTube Red to limit revenue lost from ad blocking software.

According to analytics company PageFair, which publishers use to measure the cost of ad blockers, the rate of ad blocking has risen 41 percent globally.

As summarised in their quick facts,
  • Ad blocking estimated to cost publishers nearly $22 billion during 2015. 
  • There are now 198 million active adblock users around the world. 
  • Ad blocking grew by 41% globally in the last 12 months.
  • US ad blocking grew by 48% to reach 45 million active users in 12 months up to June 2015.
  • UK ad blocking grew by 82% to reach 12 million active users in 12 months up to June 2015.
Ad block use on Chrome increased 51% from Q2 2014 to Q2 2015, reaching 126 million average monthly active users. 
Ad block use on Firefox increased 17%, reaching 48 million average monthly active users. 
Ad block use on Safari increased 71% , reaching 9 million average monthly active users. 

YouTube Gaming Star PewDiePie shared his opinion on the issues in his Blog

Here is an excerpt from his post.

So how come YouTube, an ad revenue website decided to switch to include payed services? This might seem insane, especially since YouTube comes from the ad giant Google.
Well, despite YouTube being a huge website, YouTube still isn’t profiting. Daily Mail posted earlier this year:


So out of curiosity, I asked via Twitter how many people actually use adblock:


I can also confirm with my own Google statistics that, that 40% is a correct estimate.
It’s a number that has grown a lot over the years, from roughly 15-20% when I started. And it’s not unlikely that it will keep growing.
What this means is that YouTubers lose about 40% of their ad income. 
I think what many people still don’t realize is that:
# YouTube Red exist largely as an effort to counter Adblock. 
# Using Adblock doesn’t mean you’re clever and above the system. 
# YouTube Red exist because using Adblock has actual consequences. 

In concluding, Google's (Alphabet) Strategy to try and trap lost revenue is a great one, but the question is, will people use YouTube Red
Time will tell.

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