YouTube Paid Subscriptions Could Launch This Week, $1.99 Monthly Service Takes on Netflix

YouTube plans to unveil paid subscriptions, perhaps as early as this week, in a move that could position the streaming video giant in direct competition with Netflix.

"It will apply to as many as 50 YouTube channels, people familiar with the plan say. Viewers will be able to subscribe to each channel for as little as $1.99 a month," writes the Financial Times. "The subscription service will enable channel operators to produce different content, such as TV shows and films, a person familiar with the plan said."

The new subscriptions come as YouTube searches for new sources of revenue. The site made over $1 billion in ad revenue last year, and that amount continues to grow, but subscribers would add a predictable income stream. A statement from YouTube said the company was exploring "a subscription platform that could bring even more great content to YouTube for our users to enjoy and provide our creators with another vehicle to generate revenue from their content, beyond the rental and ad-supported models we offer."

Of course, if channels, videos and original content can be accessed through a subscription, that means viewers who aren't interested in paying won't have unrestricted access to all the content.

That changes the fundamental interaction that users have with YouTube. As it is, YouTube is still the first site most people check when looking for a music video or political speech and funny bit from a sitcom or late-night talk show. The expectation is that everything is free, and perhaps you need to sit through an easily-ignored ad.

The implementation of the subscriptions is important. It's likely YouTube won't begin restricting access to old content, but instead solicit and produce new content for subscriber channels. It's also possible that new content will be available for free, but supported by ads, while subscribers skip them, much like the premium television channel model.

But it is the content that will determine the success of this new plan. If the content is worthwhile, people will pay for it. If not, there are plenty of ways to get it for free.