From free viewers to paid subscribers: The Business Case for Monetizing Content Beyond YouTube

by Aram Marno

9 July 2024

12 min read

Introduction

YouTube is an essential platform for numerous content creators, offering a means to generate income from their passions. As the second most visited website globally, YouTube's extensive reach makes it an excellent venue for audience acquisition and engagement.

However, it has its constraints. Primarily an advertising medium, YouTube doesn't allow creators to fully own their audience relationships or secure consistent revenue streams. Therefore, it's crucial to explore additional monetization avenues beyond YouTube.

Monetizing Content on YouTube

YouTube remains an excellent platform for building an audience and engaging fans, offering several monetization options. The primary revenue source for creators on YouTube is advertising. By meeting certain criteria—over 1,000 subscribers, at least 4,000 watch hours in the past twelve months, and additional requirements—creators can join the YouTube Partner Program to earn money from ads on their videos and live streams.

However, this approach has its limitations:

  • Lack of Ownership: YouTube controls the relationship with viewers and the associated data. Without access to detailed viewer information, creators face challenges in engaging their audience outside the platform.
  • Unpredictable Revenue: Ad revenue on YouTube is highly variable, as it depends on CPMs (cost per thousand views), which fluctuate based on factors like content relevance, audience location, video length, and overall channel views. Additionally, YouTube retains 45% of all ad revenue.
  • Limited Control: The YouTube algorithm largely determines which content is promoted and the corresponding ad rates, giving creators minimal control over their ad-based earnings.
  • Intense Competition: With over two million participants in the YouTube Partner Program, securing ad revenue is highly competitive, making it difficult for creators to distinguish themselves.

Advertising alone is often neither a lucrative nor predictable source of income on YouTube unless your channel garners hundreds of thousands of views and targets a high-CPM niche. Even for those generating revenue this way, diversifying income streams is essential. The most successful creators utilize multiple monetization strategies, including advertising, brand sponsorships, crowdfunding, donations, merchandising, and membership fees. While many of these options are available on YouTube, such as channel memberships for those in the YouTube Partner Program meeting specific criteria, creators still lack full ownership. YouTube retains 30% of membership revenue, regardless of the charge. Given these limitations, exploring your own subscription service could be a more profitable alternative.

Why Creators Should Consider a Subscription Model Beyond YouTube ?

The online subscription industry has surged in recent years, projected to hit $1.5 trillion in revenue by 2025. Many consumers already pay recurring fees for streaming services like Netflix, Hulu, or Amazon Prime, as well as software subscriptions like Spotify, Apple, The New York Times, or Canva. This trend has become the new norm for tech pricing.

Why is the subscription model so prevalent, and how can it benefit creators specifically?

  • Direct Relationship with Fans: Launching your own subscription service allows you to build a direct connection with your most loyal followers, bypassing intermediaries like YouTube.
  • Ownership of Audience Data: You gain complete control over your audience data, enhancing your ability to engage with them meaningfully.
  • Predictable Recurring Revenue: Unlike advertising, subscription models provide a steady stream of income through monthly or annual payments, ensuring more financial stability.
  • Incremental Revenue Opportunities: By having your own subscription platform, you create an additional revenue stream without YouTube taking a cut.

Launching your own subscription or membership platform also frees you from the constraints of algorithms, giving you the freedom to experiment with new content. It empowers you to build and engage your community directly and potentially earn more predictable and incremental revenue.

Launching a Video Subscription Business with Cadjin

Leading YouTube creators like Dropout, Sidemen, Watcher Entertainment, and Taskmaster leverage Cadjin OTT to enhance their subscription business and generate additional revenue beyond their YouTube presence.

For example, Miami Fox Streaming utilized Cadjin to launch its own Netflix-style subscription video on demand (SVOD) app. This approach provided a dedicated platform to engage and monetize its most dedicated fans while continuing to use YouTube for brand and content visibility. Cadjin is renowned for delivering the highest quality, ad-free video experiences on the internet.

By integrating Cadjin OTT, these creators have successfully expanded their revenue streams and strengthened their direct relationship with their audiences.

Maximizing Subscription Model Success

If you're ready to launch a subscription service, selecting the right content is crucial. Your audience can already access your content for free on YouTube, so to justify an additional subscription fee, you need to provide added value. Successful strategies our clients have used include:

  • Exclusive Original Content: Offer new, unique content available only on your subscription channel.
  • Windowing Content: Release new episodes a week or a day before they appear on YouTube.
  • Behind-the-Scenes and Blooper Content: Provide exclusive behind-the-scenes footage and bloopers.
  • Special Live-Stream Events: Host live events accessible only to subscribers.

If you are planning for a membership business, earn sustainable income, and build a community alongside their premium content, Cadjin is the best YouTube monetization alternative for you.

With Cadjin, you can deepen your community engagement by setting up exclusive mailing lists, sending mobile push notifications for new content, linking to an exclusive Discord community and more.

Launching your own subscription service beyond YouTube enables you to build direct relationships with your most loyal fans and earn recurring, incremental revenue. For every 100,000 free YouTube subscribers, creators can expect to generate over $144,000 annually through a subscription-based model.

Take a demo today and see how the content creators earning handsomely from their Cadjin membership site.