YouTube about to Introduce New Completely Ad-Free Subscription Service Format from Oct. 22

The rumors of YouTube planning to launch a completely ad-free subscription model has been going around for months, but the details have on how much will it cost, what will it include and the launch date, were missing – until now that is.

According to a report by Recode, October 22^nd is the date YouTube has chosen to launch its rumored subscription-base model, where the users will no longer be pestered by the bothersome ads. The subscription is expected to be $10/month and would completely banish all sort of paid advertising from YouTube and would include the current benefits of Google Play Music Unlimited.

“We are progressing according to plan to provide fans more options in how they enjoy content on YouTube,” the company said in an official statement.

Now one has to assume that YouTube must have some financial motivation behind this massive move, especially after 10 years of relentless commitment to the ad-supported service model. Maybe, just maybe, it has something to do with the continuously growing objection to forced advertising, with majority of the users choosing to install ad-blocking software. As the number of users that install ad-blocking browser plugins like AdBlock Plus, which prevents the advertisement from loading on webpages, Google loses out on an imaginable amount of money,

PageFair, a company that is renowned for measuring the cost of ad blocking, has estimated that Google has lost on at-least $6.6 billion in advertising revenue in the last fiscal year alone. That is a massive number and PageFair stresses that is a very conservative number.

Google pays AdBlock Plus more than $25 million per year to get on the extension’s whitelist, which lets Google’s ads bypass to the users with the default settings. It’s is estimated that Google has saved more than $3.5 billion through this agreement with the ad blocking software.

This was just the monitory side of things. The even bigger problem for Google’s video platform YouTube, which relies on its unique content creators to bring content consumers to the website, is the ad-blocking software decreasing the content creator’s paychecks.

Since the content consumers are using ad-blocking plugins, the total ad revenue for YouTube decrease, which in turn reduces the paychecks the content creators receive. If YouTube starts to lose its content creators, then it stands to lose even more viewers, which could spell disaster.

Hence the company’s first real push away from advertising to ensure that the user base of YouTube remains growing.