Color Me Red, and Free, on YouTube

I am having a little trouble following all this, so please excuse me.  Maybe it’s my “advancing years,” and if anyone can help me, please do.  Now when I go to the YouTube site on my iPad, it really is all Red, and when I click on a posting that I want to see, I do have access to it, but I also see a short advertisement before it runs.  So I guess I am Red, and have not been asked to pay the $10-a-month subscription?

That’s really okay with me.  I can even skip the advertisements after I have watched the first 30 seconds or so?  But if I really find this an inconvenience, I can now pay YouTube $120 a year so I don’t have to go through this “agony.”  Now if I understand this subscription option correctly, YouTube actually gets a “double dip” as they say in the U.S.  They already have paying advertisers for some of their posted videos, and now of you want to see them without these advertisements, you can pay YouTube for that privilege.  I think I got this right?

Please let me know if I am not understanding the economics of all this.  It just doesn’t seem that YouTube is trying to improve the content that they offer in return for a paid subscription service, but I could be wrong.  You will get to see video clips faster, and many may be willing to pay for this.  But as one analyst concluded: “content is the key so we’ll have to see how they execute on it.”

Ray Myers

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