The search engine company is planning to charge monthly from its users to use YouTube in the coming months.
Recent Google news has made it evident that the company has plans to increase its revenue generation by something that is not going to be welcomed by the users much. The tech giant has made it clear that it is going to charge the users for using YouTube by the end of the current year.
This news might not have been received well by the users of the most popular video streaming right but it was sure seen as a positive step towards a bigger generation of revenue by some analysts who are covering the stock activities of the technology giant. The revenue that has already been generated by the streaming website is expected to increase by a massive 16% after this plan is incorporated.
Analysts at SunTrust equity company believe that this step that Google is planning to make out in the open is going to prove to be very fruitful for it. These are some of the very few analysts who show any positivity regarding this plan. If this is done by the tech giant successfully, 8 million users of the video streaming site will be paying the software company around $10 every month which will help the sales of the firm to shoot right up on the stock index.
The analysts of the same firm are of the opinion that by doing this, Google is doing the right thing as lately the shares of the android app company had been facing a downfall and a quick plan had to be thought of to overcome the falling position of the software giant. This step has been taken as an arrangement to bring the firm out of the dip that it has lately been facing.
On the other hand, analysts also believe that this is not just something Google is doing to make its financial position better in the market, but this has to be done in order to make a closer and better relationship with its customers. Through this privatization, the search engine company will also be able to take a closer look at the content that is being posted by the users and will keep be able to keep a strict check on it.
It has been observed from a recent research that now users tend to use another website for watching videos which are also on a higher level of quality than anywhere else which is why the traffic from YouTube is being shifted away gradually. If Google makes sure that the content being posted is authentic with better quality, then it is very much possible that the user base that is prying away from the site comes back to the video giant to view their desired content.
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