Home » Google » Is YouTube Red Helping Content Creators Earn Money?

YouTube Red is the subscription service offered by YouTube to its users for $9.99 a month offering added services and revenue to content creators. I would like to point out as well, YouTube Red is 12.99/month if purchased through iOS because of Apple’s fees. Sign up on YouTube.com then sign into the app and save a few dollars.

Some of the added benefits you get from a subscription is as follows

  • Offline playback
  • Google Play Music
  • Background videos
  • Exclusive content
  • YouTube Ad-Free

Using YouTube Red, you won’t see ads on the YouTube website or within the YouTube apps on mobile and TVs. This does not apply to paid content on YouTube, such as paid channels or TV and movie purchases and rentals. You may still see ads with that content.

Here’s a full list of devices where you can watch ad-free videos with YouTube Red:

  • YouTube and YouTube Gaming apps for Android and iOS
  • Chromecast
  • Android TV
  • Apple TV
  • Xbox and PlayStation 4
  • Roku
  • Smart TVs

Is YouTube Red Helping Content Creators Earn Money?

As great as these benefits are the real reason behind YouTube Red was to help content creators generator more revenue. All YouTube channels that monetize their content were required to agree to the terms of YouTube Red, with channels getting a payout of 55 percent of revenue, based on watch time.

Creators get money based on watch time based on 55% of YouTubes total net revenue. I would like to point out that statement meaning 55% after the cost of what YouTube has to pay to show the video. It’s not 55% of $9.99 a month subscription it is 55% after YouTubes costs are paid to show and host the video.

Creators have to deal with YouTube Red users viewing their videos during his/her free trial period. YouTube Content creators do not earn income from a video viewed while you are on your free month long YouTube Red trial period.

Despite all this YouTube Star John Bain (aka Totalbiscuit) had this to say about YouTube Red Subscribers

“I can now clearly determine how much Red views are worth vs normal views. If I did my math correctly, since Red started, a Red view is on average worth 20x that of a normal ad view. This calculation is based on taking the total revenue the channel has generated via Red and dividing it by the total number of Red views since Red was first launched, then multiplying that number by 1000 to find the effective CPM of Red.”

After looking over the original Content offered by YouTube Red it’s clear that the service is not a competitor for Netflix, HBO, Hulu or any of the big players in the game. YouTube Red is an alternative to them aimed at a target market the hardcore Youtuber. Users that spend lots of time watching and creating great videos.

I do think that YouTube Red is aimed at the mobile user more than the desktop user. I do believe that users on the desktop can run ad blockers and be ok with just ad free YouTube. I don’t totally agree with that since ads are part of the reason the creators make great and fun content for people to enjoy. Same goes for bloggers the only group to get around adblockers are podcasters.

If you’re going to sign up for a YouTube Red account to just support your favorite few channels my advice would be to just send them a PayPal donation. I think the channels would benefit more from it and would make sure all the money gets to the person you intended.

Despite the many questions of does, the monthly fee of YouTube Red help creators make more money? I think it does and for the right person, it’s what they have been waiting for it’s a great service. I don’t personally watch enough YouTube to spend the money but there are many people out there that this was perfect for them.

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