Forceful subscription: Youtube’s new way of getting advertisers back

One does not simply watch YouTube videos without advertisement. Imagine going on YouTube just to watch a 5-minute music video and 5 hours later you find yourself still skipping ads? Yes, that’s the beauty of YouTube.

Squeegee Men: New Business Model of YouTube.

What if every time you close a YouTube ad, you receive $1? Yes, my dear friend, you would be a millionaire by this time. Ads everywhere!!! Probably YouTube is adapting “squeegee men’s” business model. To get its advertisers back, YouTube came up with a very amazing idea called “forced subscription”. Until and unless you don’t subscribe, the streaming giant has decided to annoy you by streaming ads between the videos.

Undoubtedly, YouTube is the most successful media company on the earth, streaming approximately 5 billion videos per day. It receives over 30 million visitors per day. Well, that’s a lot of ears, and eyes too.

YouTube consists of viewers as well as listeners. The video streaming giant also serves as virtual jukebox like Saavn. Unlike Saavn, YouTube does not charge. The streaming giant receives its revenue through ads that it runs. On the contrary, other music streaming services procure their earnings by subscriptions made by the customers.

As subscription centered income is both profitable and predictable than advertisement-based income, YouTube unsurprisingly wants to reap the benefits. Now, any person would think that such established company would come up with a brilliant idea to switch from ad-based revenue to subscription-based revenue. Here my friend you are wrong.

Back in October 2015, YouTube launched YouTube Red, the media giant’s subscription-based video issuing service which accounts for only 7% of Youtube’s revenue. However, when compared to YouTube’s unfruitful attempts to introduce subscription-based music streaming, YouTube proved to be a huge success story. YouTube’s market share in the field of subscription-based music streaming is notional.

Majority of the tech firms, when trying to establish themselves in the market, opt to “build a better mousetrap” pathway. They lure customers by offering them trial membership, new features which are easy to use, and so on. If the strategy nose-dives, they take cues from the public, restructure the mix, and attempt again.

However, YouTube seems to have a different plan. As an alternative, YouTube schemes to peeve its current users by plaguing them with ads, until and unless these users don’t pay up out of misery. Poor users!

Indeed, it is an outlandish marketing strategy for the below reasons:

  1. Rather than convincing the users to upgrade the services, this scheme would lead the customers to other services as it minuses the user-friendly feature of the app.
  2. Campaigners put real efforts in these advertisements to make them entertaining and appealing. YouTube’s repositioning these ads in such manner will prove them as means of torture, which might disappoint advertisers.
  3. This strategy doesn’t cover up YouTube’s inability to fashion subscription- paid streaming services for which consumers are keen to pay.

I’ve been trying to recall any marketing scheme used by any other company formerly that is hell-bent on grating people until they buy in from you. The only one I remember is the “squeegee men”, who would pester you by cleaning your car windows until and unless you pay them to let you live peacefully.

Well, I am not entirely convinced about Youtube’s “squeegee men” strategy will be a successful business paradigm for such a reputed company.