iWorld
YouTube to launch ad free subscription based model in India
MUMBAI: Google’s popular video hosting platform YouTube has been a boon to independent content makers as it enables them to exhibit their talent to a worldwide audience. Now, in order to enhance user experience, YouTube is all set to launch a subscription based ad free model in India. According to sources close to the development, YouTube is planning to launch the innovation around mid June for Indian consumers.
While viewers are offered a wide range of content on the platform, almost all content on YouTube starts with an advertisement wherein the option of skipping it is sometime available and sometimes not. Ads often pop up in the middle of the content too, which interrupts the flow of the viewers.
The new subscription based ad free platform will ignite the long sustaining debate of the whether a video on demand (VOD) platform should follow the advertising or subscription based revenue model. Advertising revenue mode is directly proportional to rating and when it comes to YouTube, its views. It is often very difficult to satisfy both consumer and advertiser at the same time and hence the content and root idea behind it gets compromised.
Subscription based model also has its own drawback, poor online payment infrastructure, lower number of credit or debit card holders are a few of them.
Times Network CEO and MD MK Anand is of the opinion that though subscription model has a lot of positives, India is not yet ready for it. “Consumer behaviour is the biggest challenge besides payment gateway and card penetration. A huge part of digital savvy young population refrains from using card transactions for various reasons and hence at this moment advertisement revenue model is the only option. Going forward, if the number of card holders increase and the consumers behaviour towards e- transactions becomes friendlier then we may see a new revenue model emerging.”
YouTube’s new offering will enable a consumer to either choose the ad free platform or stick to the available one. From content creators’ perspective, Ping Network co-founder Rajeshree Naik asserts, “The new innovation from YouTube will cater to the growing need of sophistication of a consumer. We can take example from the newly launched HD channels, the same content is available on the SD platform too but consumers are paying to get quality content. The innovation will help us satisfy more people with the content we are offering.”
When asked if Ping Network will create fresh content exclusively for the paid platform, Naik adds, “Not at the moment. For now the platform will only provide better and uninterrupted viewing experience to the consumers. But going forward if the platform makes a sustainable impact creating exclusive content can be an option.”
According to the 2014 KPMG report, 12 per cent of the digital ad spend mix is acquired by videos and the spend on digital video has increased by five per cent compared to 2013. When questioned whether the ad free platform from YouTube will impact advertising, Maxus South Asia head of digital Unny Radhakrishnan says, “There will not be any significant impact on advertising immediately. As per the news reports, YouTube has said that advertising will still be their core revenue. The share of consumers who will go for paid subscription will be very small initially. In the long run, this would perhaps lead to more investments and therefore increase in the quality of content and in turn paid subscription. An India roll-out of this is not expected in the near future.”
It remains to be seen if the new initiative from YouTube breaks the mould and creates a new sustainable revenue model, which will satisfy both producers and consumers.
iWorld
Snap names Doug Hott CFO as Derek Andersen exits amid restructuring
Leadership shift and layoffs signal sharper focus on costs and growth path
NEW YORK: Snap Inc. is reshuffling its top leadership, appointing Doug Hott as chief financial officer as longtime finance chief Derek Andersen prepares to step down next month.
In an internal note, Snap chief executive officer Evan Spiegel said Andersen will leave after nearly eight years with the company, with his final earnings call set for May 6 and last working day on May 8. Andersen is departing for a new opportunity, closing a chapter that saw him guide the company through the pandemic, major shifts in digital advertising, and broader economic turbulence.
Reflecting on his tenure, Snap chief executive officer Evan Spiegel said Derek Andersen had been “a great partner” who helped steer the business through some of its most challenging periods while keeping a steady focus on long-term growth and profitability.
Taking over is Doug Hott, currently vice president of finance, strategy and corporate development, who has worked closely with leadership on capital allocation and restructuring. Snap chief executive officer Evan Spiegel described Doug Hott as a long-time partner with a strong commitment to cost discipline and doing more with less, signalling continuity at a time when efficiency is front and centre.
The leadership transition comes alongside a broader organisational reset. The workplace experience team will now report to Scott Withycombe, while the content team will move under the product organisation led by Ceci Mourkogiannis. Partnerships executives Anne and Craig will report to Zach Kahn as Snap aims to streamline operations.
The changes follow a recent round of layoffs that saw the company cut around 1,000 roles, or roughly 16 per cent of its workforce, reflecting a wider industry push towards leaner structures and tighter cost controls.
Investors are now turning their attention to Snap’s upcoming quarterly results in early May, which are expected to offer clearer signals on the company’s financial trajectory and the impact of its restructuring efforts.
With a new finance chief in place and a sharper organisational focus, Snap appears to be tightening its belt while keeping an eye on long-term growth in an increasingly competitive digital advertising market.
