YouTube Red: Going Head-to-Head with Netflix?

In today’s world, it’s almost impossible to escape the massive reach of advertising, whether online, watching television, or on a mobile device. But thanks to YouTube Red, the new online video subscription service launched on October 28 in the United States by Google, music lovers and TV-series enthusiasts are able to gorge on as much content as they can handle -- sans ads – for just $9.99 per month.

Just a week after the service’s U.S. launch, neither Google nor analysts have provided any subscriber numbers. It’s likely, however, that the service will catch on, thanks to the massive influence YouTube.com has garnered, for both content consumers and creators, according to industry analyst and New York University music professor Catherine Moore.

“Notwithstanding music rights holders' love-hate relationship with the site, YouTube has now displaced Apple at the center of the music business,” Moore says. “YouTube fosters users' creative side, satisfies their passion for sharing, and lets them just sit and listen, too.”

Just a decade old, YouTube has become a sensation because it provides everyday people with a way to distribute their own content, as well as a platform through which both large and small creators can interact with their audience. YouTube Red stays true to the service’s initial appeal of providing more control to users over the content they see, and how and when they view it.

“The new Red paid service is positioned as something to further satisfy users with no ads and offline control,” Moore says.  “It's a strong marketing message that shows that YouTube puts fans first.”

YouTube Red is also being bundled with Google Play Music, providing subscribers with audio-only and video content for one fee, while also helping to expand the service’s reach into an existing user base.

But the adoption of a subscription model – and new content located behind this paywall – also appears to be a direct shot across the bow of over-the-top (OTT) providers, such as Hulu or Netflix. Concurrent with the launch of the Red service, YouTube also announced several new, original shows that will only stream to Red subscribers. According to the YouTube Official Blog, the following shows have been announced:

• Scare PewDiePie: In this reality-adventure series, from the creator and executive producers of The Walking Dead at Skybound Entertainment and Maker Studios, experience thrills, chills and laughter as PewDiePie encounters terrifying situations inspired by his favorite video games.

• Sing It!: From Fine Brothers Entertainment and Mandeville Films comes SING IT!, a scripted comedy that lovingly satirizes the reality singing competitions that have become a centerpiece of pop culture.

• Lazer Team: In this feature-length action-comedy from Rooster Teeth and Fullscreen Films, four small-town losers stumble upon an alien ship carrying a mysterious cargo, leading to a battle to save Earth from an all-powerful enemy.

• A Trip to Unicorn Island: From the team at Astronauts Wanted, this feature-length movie gives fans an extraordinary look inside the life and journey of Lilly Singh as she embarks on a challenging 26-city global tour where she has to remember to practice what she preaches: happiness is the only thing worth fighting for.

• Untitled Joey Graceffa project: In this all-new reality adventure series, Joey Graceffa brings together an ensemble of top YouTubers for a murder mystery they'll never forget. They'll form alliances to survive, but little do they know that most won't make it out alive.

• 360 Project from MatPat of Game Theory: YouTube educator and pop culture expert MatPat from The Game Theorists invites the audience to come along for the ride in an innovative new series and 360 VR experience. In each episode Matt explores the real-life science behind popular video games by throwing gamers into the high-stakes scenarios they play through every day, from water jetpacks to haunted pizzerias.

• Single by 30: In this romantic drama series from Wong Fu Productions and New Form Digital, two high school best friends make a promise to get married if they’re still single at 30. A decade later, with 30 quickly approaching, their attempt at upholding their vow unfolds in unexpected ways. Starring Harry Shum, Jr. and Kina Grannis.

• Untitled CollegeHumor project: Written by and starring the cast of CollegeHumor, along with special guests, this new anthology series will take a dark and comedic look at the absurdity of Internet culture.

• Fight of the Living Dead: In an unprecedented social experiment reality show from Alpine Labs, Fight of the Living Dead takes popular YouTube talent and traps them in a frighteningly realistic zombie apocalypse. They must use their instincts and gaming skills to survive as they battle the elements for the ultimate prize of survival.

• I Am Tobuscus: From the mind of Toby Turner, this scripted comedy explores the world of a self-involved YouTube creator pursuing bigger stardom. The show features original music, and satirizes the hilarious details of being an eccentric, new-age celebrity.

Moore says that it’s likely that Google, with its deep pockets and extensive reach, may be looking to become integrated into TVs and other consumer-electronics devices, similar to how Netflix has penetrated this marketplace by striking deals with OEMs. A scan of the connected television landscape shows that Netflix has OEM relationships with Samsung, Vizio, Panasonic, Hisense, LG, and Sony. Says Moore: “This would make sense as more and more interactive TVs reach homes.”

On the Web:  http://youtube.com/red

Keith Kirkpatrick is founder and principal of 4K Research & Consulting, LLC (www.4kresearch.com), a market research and consulting firm. By night, he’s the co-founder and lead guitarist for Creative Juice (www.creativejuiceband.com), a New York City hard-rock cover band.