Media Brands Gamble on Untested YouTube Paid Channels

When National Geographic started looking into alternatives to cable, it found an as-yet-unreleased product that might be a good fit: YouTube paid channels.

The National Geographic Society was in a quandary. It knew it wanted to launch a video channel for kids based on the success of its children's magazine and games, but wasn't entirely sure which platform to use. The company initially considered creating another cable channel, but it wasn't convinced that advertising — the main source of revenue for TV channels — was the best business model when going after that type of audience.

Instead, National Geographic started looking into alternatives to cable, including reaching out to YouTube last August. National Geographic had found great success in the past publishing clips on YouTube, but the video site said there was no way to monetize a video channel other than through ads. But in October, YouTube got back in touch with National Geographic to propose its new YouTube paid channels. Read more...

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