Last week, YouTube raised more than an eyebrow for many users when it came to its subscription-based Red service. While this would certainly be good news for those looking to watch videos without dealing with ads, it’s also posed bad news for long-time content creators, who felt limited when it came to signing on with the company’s newest label.
Felix “PewDiePie” Kjellberg, one of the most popular YouTube streamers out there (he made over $4 million last year alone), expressed his thoughts on the new service through his blog, where he spoke mainly in defense of the service, which aims to charge consumers $10 a month to access exclusive content and skip over advertisements in favor of getting to their content.
He noted that, despite the channel having over one billion users, it’s losing a significant amount of money, with the infrastructure alone costing $3.8 billion a year. He also noted that, per the included image from the Daily Mail below, analysts indicated that users aren’t buying as much products from advertisements as companies hoped. Streaming services like Amazon and HBO pose serious threats as well.
But perhaps the biggest nuisance is ad-blocking software. He posted a poll to his fans asking them if they use it, and 40 percent of the 8,000 who answered back state they do. “It’s a number that has grown a lot over the years, from roughly 15-20 percent when I started,” he said. “And it’s not unlikely that it will keep growing. What this means is that YouTubers lose about 40 percent of their ad income. Personally, I’m ok with if you use adblock on my videos. Ads are annoying, I get it, I’m here to complain about that. But for smaller channels, this number can be devastating.”
He added, “Using Adblock doesn’t mean you’re clever and above the system. YouTube Red exist(s) because using Adblock has actual consequences.”
Ad-blocking software has been a hindrance on companies over the past few months, and it’s a practice that isn’t going away with users anytime soon.
With that, Kjellberg did note that there are still questions about YouTube Red, like “How much of YouTube Red’s $10 actually goes to it’s creators ” and “Will YouTube Red be beneficial for smaller channels Is the $10 price actually justified ”
While these remained unanswered, Kjellberg concluded his blog by simply stating, “These are all important questions about YouTube Red. But right now, it’s more important that we understand what the actual problem is here.”
The full post is available here, and also posts various Tweets in regards to users’ preference to ad-blocking services.