YouTube is trying to find more ways to monetize the popular web service, and recently started a test project with selected partners who were invited to start offering video downloads to interested viewers (they subsequently killed our own download tool, presumably because they want to minimize the risk of losing money on unauthorized download apps). Now it seems the Google-owned online video community site is ready to expand the program to other interested partners based in the U.S. (see screenshot below).
As we noted earlier when we first caught wind of the download service, selected YouTube partners can offer their video downloads for free or for a fee (determined by the partner), paid through Google Checkout. Most videos in the test charge about $1 each. The partner can also decide how the downloadable video will be licensed to the user – whether it will be restricted to a private non-commercial use video, or whether it can be used under Creative Commons.
It’s not entirely clear if Google / YouTube is currently taking a cut on the for-fee downloads during the test period, but it will most likely do that at some point if it isn’t already.
Recently, Crédit Suisse analyst Spencer Wang estimated that the video site will lose approximately $470 million this year alone (although we should note that another analyst, Youssef Squali from Jefferies & Co., predicted YouTube revenues to amount up $500 million in 2009).
Either way, in this economy, YouTube needs to be monetized as much and as soon as possible, and the video download option is just another way the company hopes to generate income from the popular site. Other steps it has taken up until now include YouTubevertorials, selling search results, and ad revenues from big content partners.
Pretty pointless as everyone has the know how of illegal downloading!
I think Apple is about to sell it’s 1,000,000,000th song amidst piracy. If youtube could boost sales to an itunes level they have a chance of making it out of the black. I would pay for quality video content especially of the educational variety.
Er…billionth app, actually. Not song. ;P
But it’s true that downloading vids from youtube can sometimes be a pain, depending on the circumstances, and sometimes there’s content on youtube that you just can’t find elsewhere. (Weird, yeah?) I think that I could possibly be persuaded to pay for video content, and offering the option barely costs Google anything.
I use Video Download Studio, it can help me download it for free.
I know how to download something illegally BUT if I’m on a page watching a video and there is a link to download it and it costs £2 I’ll pay for the convenience.
That’s why I buy my music and movies through iTunes instead of downloading them – it’s just more convenient.
That’s just retarded!!!!
It better be something really good for me to pay money to watch. Some of these social sites are beasts but monetization is always a challenge.
@Ryan Morrison Especially when if YouTube is able to offer multiple formats of download. Like mobile/iPod/iPhone, high def, etc.
Great article
You gotta be kidding me!! website that blew out and got respect because it lets AMATEURS upload and share their AMATEURS videos will ask me to PAY for the material that they did as a hobby, for fun, or other non-commercial reasons??
Not only I have a TubeHunter, but also – guess what – I have an online, free of charge youtube account with “favorite” feature.
Music is something different. First, many users both Apple Mac and Apple iPod has less overall computer knowledge than PC users (no offence!). Example — my friend could not understand how it is possible and how I can get that protected file from iTunes, burn it on CDRW as a regular Audio, and then ripp it back to unprotected mp3 on my PC.
Secondly mp3 were ALWAYS about copyrights — show me a percentage of amateur audio/music files out there in the clound?? none or < 1% ??
Again, Youtube WILL NOT make money this way. Sorry Youtube
I don’t think you’re really getting the point here. YouTube isn’t asking you to pay for the videos that people made for non-commercial reasons. It’s merely giving users the option to make money off of their own content. If amateurs want to continue providing content for free as a hobby, they are still allowed to do that. However, if somebody wants to provide premium content at cost, they are also allowed to do that.
Nick, it does not change the point and you are right using word “somebody” — that “sombody” is and WILL NOT be enought to bring serious money to the table (vide: $470M need this year to run youtube. So – 470/12 == ~$40M per month. you would need 40,000,000 people upload PAID videos and another 40,000,000 to buy those videos. Even though you have one video that 10,000,000 will buy, how are the chances?? If someone has such an “extraorginary unique” video — they will go straight to CNN to sell it. Why do I know? because they would rather get 50,000 in cash TODAY from CNN, than put a 99cents video on youtube and see it FREE on other video sharing platforms. And lets not even start a subject of fighting to get that video down due to copyright infrigement or something like that.
Aga, sorry Youtube, not real money here
It’s not asking you to pay anything. Streaming is still free. But you can pay for a download (a totally new service!) if you want to.
maybe i’m not understanding correctly but it doesn’t seem like the article is saying YouTube will charge to watch videos, only to download for people who may want to burn them or store them locally on video players like itouch. I don’t see anything wrong with that if that is their plan.
Most probably they ll comeup with a script which disables the downloading.
I guess this might generate some revenue for YouTube and its partners. But again, you have to be a top YouTube publisher to be even considered for a partner. So what about all the other producers who have great content, just not millions of views? When will YouTube come up with a way for them to monetize their videos?
it’s not youtube’s job to figure out how joe the plummer can make cash off of his videos.
YouTube’s success is built on amateur video and works by independent producers. Nobody’s talking about joe the plummer unless he’s trying to make a living producing well-done how-to videos like How to Install a Faucet or something like that
I wonder if http://www.intheglo.com is somehow related to youtube. Anyone know about them? I keep hearing about it, I guess its a marketplace where users sell things by listing with videos. Cool concept, surprised no one else thought of it sooner… I am curious how they house their own video if not backed by a stronger source like youtube.
No one is going to pay to download youtube videos if you look around you can download fire fox addons that add a “Download Video” button. Also there are sites like http://vixy.net that you can just copy and paste the youtube link and it will download to your computer in the format you want for free no sign up.
this isn’t a bad idea, it’s a tough sell for something you can watch for free but if by paying it gave you access to longer clips or premium content like full commercial free TV show episodes then i can see it working. The 10 minute cap on videos kills the idea for me.
@BrendanBiryla
Hey guys. I’m reading some very energetic comments saying it is ridiculous to charge money to download videos. I am not sure everyone is getting just how feasible a model this is. It may not recoup $470 million a year, but there are plenty of people willing to fork over a buck to support something they like. Look at iTunes.
Yes, there are a lot of crappy videos on YouTube, but as a filmmaker using YouTube to distribute web series videos that I write/direct, I am surprised at the number of fans out there who want to throw a few bucks my way to help me afford to continue entertaining them. I am and will always be happy to provide free content on our channel. We are currently halfway through the Partner Program application process, and if we get the the point where we have the opportunity to add the option to download our videos for 99 cents, heck yeah we’ll do it!
People will be able to watch out stuff whether they pay, or not. However, the people who want to support us will be able to send a couple of bucks our way in exchange for the ability to download some of our videos. It’s a great way for the community to interact and for viewers to encourage more original and high-quality content on YT.