YouTube, which was bought by
That hasn’t stopped Netflix from encroaching into YouTube’s territory. The Los Gatos, Calif., company recently signed a deal with YouTube star Miranda Sings. A year earlier, another YouTube personality, Freddie Wong, sold his RocketJump series to Hulu. A successful showing by Red could help retain some of those YouTube stars, some of whom were paid bonuses not to jump ship.
“We calculate that even a low single-digit percentage rate conversion from free ad-supported to paid subscription will allow Google to monetize users at 10 times the annual [revenue per user] versus that derived just from advertising,” wrote analysts at Credit Suisse in a research note.