And next year, YouTube is launching a gaggle of original shows that will add value to your monthly subscription - shows from prominent YouTube stars like Felix "PewDiePie" Kjellberg and Joey Graceffa. So it's basically like Hulu Plus or Netflix, but with more videos of Maru.
Unfortunately, for the hundreds of millions of people using iPhones and iPads, YouTube Red costs $3 more. It's what the Apple news web calls an "Apple Tax," and Google's YouTube is passing that tax along to subscribers.
The logic goes like this: Apple takes 30% of any revenue created by apps distributed through the App Store, so to make up for that charge, YouTube is passing it along to subscribers.
So rather than paying the same $9.99/month that everyone else is, anyone with Apple phone and tablet - again, hundreds of millions of people -will have to pay an extra $3 to make up for YouTube losing 30% of its revenue to Apple.
Spotify does the same thing, as do many other app makers faced with Apple's cut of their profits.
You'd be hard-pressed to find that out, though. YouTube didn't mention this information in the main announcement. It's only when you steer to the FAQ page that you see the fine print:
"YouTube Red is a paid membership that brings ad-free, background, and offline experiences to YouTube content for a monthly fee of $9.99. [$9.99 per month for Android, desktop, mweb / $12.99 per month (iOS)]."
We asked Google for a statement on the price discrepancy and have yet to hear back.
Interested in seeing how YouTube Red will work when it launches on October 28? Check out the intro video from YouTube right here:
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