YouTube's long-awaited subscription service might finally arrive next month.
Re/code, citing people with knowledge of YouTube's plans, reported that the service will cost at least $10 a month and remove all ads from the service's videos. The free, ad-supported YouTube will remain.
Reports have been surfacing over the last year that Google is working on an ad-free subscription model for YouTube, but that service has yet to materialize. Offering an ad-free service would help boost YouTube revenue, which has always been flagging, at best. It would also eliminate some of the difficulties Google has had in attracting high-paying advertisers to its site.
To sweeten the pot, Re/code said a YouTube subscription would also include access to YouTube Music Key, a beta service available now that allows users to listen to ad-free music and get offline access to tracks. It has been rumored that Google would eventually take YouTube Music Key out of beta and charge $10 a month for that, putting it in line with competing offerings like Spotify and Apple Music. By bundling ad-free videos, however, Google could be trying to undercut the market and provide a two-in-one offering at the same price.
According to Re/code's sources, YouTube sent out a letter to content owners, saying that they must agree to the service's new terms by Oct. 22. Any video owner that does not agree to the new terms, which includes revenue-sharing agreements, will find that their videos will be no longer accessible in the U.S. after that date, according to the report.
YouTube declined to comment on the Re/code story directly, but said it is "progressing according to plan to provide fans more options in how they enjoy content on YouTube."
"We have support from the overwhelming majority of our partners, with over 95 percent of content watched on YouTube covered by agreements, and more in the pipeline about to close," YouTube said.
Google is hosting a press event in San Francisco tomorrow that is rumored to include the launch of new Nexus phones and an updated Chromecast. Stay tuned to see if YouTube is also on the agenda.