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YouTube Enters Top Grossing Apps as Red Takes Off

Tim Maytom

youtube_redWhen Google first announced it was introducing an ad-free version of YouTube that would instead charge a subscription fee to users, there were questions over whether or not YouTube Red was a sustainable model, given that most of the content was already available for free.

However, that question has been answered with the news that YouTube Red has entered the Top 10 high grossing apps on the iOS App Store shortly after its free trial period ended, indicating that enough people have signed up to bring in considerable revenues.

Of course, as with any service that offers a free trial period, it's likely those revenues will decrease as people cancel subscriptions (possibly having intended to do so before the fees kicked in) but depending on how YouTube promotes its new service and whether people feel an ad-free YouTube is something they're willing to pay for, the app could become a considerable cash-cow for Google.

YouTube Red not only enables users to watch videos ad-free, but also provides them with the ability to download videos to watch offline later, and will aim to serve as a rival to music streaming services, with videos able to play in the background while other apps are used, and access to Google Play Music.

55 per cent of subscription fees that Red earns go towards content creators, the same percentage as with ad revenue the firm earns, meaning that creators have their own interests in encouraging users to adopt YouTube Red. As it stands, YouTube's position on the iOS App Store chart suggests it's bringing in at least $50,000 (£33,0000) per day.

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