YouTube unveils paid video service without ads

Reuters News
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Posted: Oct 21, 2015 1:54 PM

By Lisa Richwine

LOS ANGELES (Reuters) - Alphabet Inc's YouTube will launch a $10-a-month subscription option in the United States on Oct. 28 that lets viewers watch videos from across the site without interruption from advertisements, the company said on Wednesday.

Starting early next year, the service called YouTube Red will add exclusive shows and movies from top YouTube creators including PewDiePie, Lilly Singh and The Fine Brothers.

"Consumers are embracing paid subscriptions of ad-free content at an incredible pace," Robert Kyncl, YouTube's chief business officer, said at an event at YouTube's production space in Los Angeles.

The effort offers a new source of revenue for YouTube and its video creators. Rival streaming sites such as Vessel and Interactive Corp's Vimeo are luring online stars to their paid offerings, which provide creators a larger cut of revenue than they typically receive from YouTube's ad-supported videos. Facebook also is taking steps to boost video viewership on its site.

YouTube will continue to offer its free, ad-supported service, which has more than 1 billion viewers around the world.

(Reporting by Lisa Richwine; Editing by David Gregorio)