YouTube cofounder says people should pay for service

YouTube cofounder thinks Google's plan to launch a subscription version of the service without adverts is a great idea. 

YouTube has grown massively since its launch in 2005 and and suibsequent buy-out by Google a year later. To support its continued growth, the site needs to provide the right tools for people to create and post videos, even if that might result in a cost to users, Hurley said.

"You have different forms of [video on demand]," he said, suggesting that some might be worth paying for. YouTube needs tools to help people create better content, determine how to make money from their video, and charge subscribers, he said.

Asked if YouTube should be charging consumers to watch certain videos, Hurley said, "I think that's an option."

Hurley made his remarks in an interview with Bloomberg Television that's due to be aired Thursday evening. A transcript of excerpts was provided to reporters.

Google is said to be readying an ad-free YouTube subscription service to launch by year-end. It's expected to cost around US$10 per month.

YouTube already offers a paid version of its service for music fans that launched last year.

During the Bloomberg interview scheduled to air later Thursday, Hurley was critical of some elements of YouTube's business. Major studios and television networks can often negotiate higher prices for advertising than independent video creators, he said, but there should be a more level playing ground.

"Labels and networks shouldn't get better deals than the regular creator," he said.

In 2013, YouTube standardized its revenue sharing model, giving itself a 45 percent share of ad revenue from big networks and indie creators alike. But some smaller creators have found it difficult to make money through ads.

YouTube is a significant source of ad revenue for Google. The average spend per advertiser has increased by more than 60 percent from last year, Google reportedlast week.