You Tube considers charging subscription fees

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YouTube is deliberating whether or not to bring in subscription fees to make its users pay for video content on the site.

The website, owned by internet search giant Google, has recently started showing TV programmes from the likes of Channel 4 and Five in the UK, where both companies split any ad revenue generated by the content.

However, one of the company’s vice presidents has warned this advertising model is not suitable for all.

During an interview with Reuters, David Eun, vice president of content partnerships at Google, said: "We're making some interesting bets on long-form content; not all content is accessible to us with the advertising model."

The two options on the table for YouTube is either charge a monthly subscription fee for the content or to introduce a rental system where users have to pay for the programmes they chose to watch.

The website has also claimed to be in talks with major film companies such as Lions Gate Entertainment, Sony Pictures and Warner Bros so films can be introduced to the site via this rental model.

However, Eun insisted that advertising would still be the website’s main revenue generator.

He concluded: "If we just continued to focus on our advertising model that would be enough opportunity to create meaningful revenue."

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