Google Plots New YouTube Subscription Service as Soon as This Year

Google Inc. plans to offer a subscriber version of YouTube as soon as this year, letting viewers see millions of videos without having to sit through ads.

Revenue from the new feature, which will put Google into more direct competition with streaming services such as Netflix Inc. and Hulu LLC, will be shared with video creators, Google told them in an e-mail that was obtained by Bloomberg. The service may debut by the end of the year, said a person with knowledge of the matter, who asked not to be identified because the plans aren't public.

"By creating a new paid offering, we'll generate a new source of revenue that will supplement your fast growing advertising service," the letter said.