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Vying for Video Subscription

If you ask a typical consumer what he dislikes most about the web, there's a good chance he'll say "ads." It's a visceral reaction; he's probably the same user who'll sit through an elaborate home page takeover without bother, and click on the very banners he claims to loathe. It might be that he's harboring some deep-seated resentment left over from the pop-up days. Or maybe he spends too much time on the kinds of sites that put more effort into ad quantity than quality.

Whatever the source of his chagrin about ads, it begs the question: will he pay to avoid them?

Historically , this has been a thorny issue for publishers. There's so much content out there that it's difficult to convince users to pay for it. There are some exceptions: Pandora is among a handful of sites that afford users free, ad-supported access to their product but also offer them the ability to upgrade (known as the " freemium model .") Most e-card companies take the same approach, with a selection of free cards and more premium options available for a nominal fee. And Hulu last year unveiled a paid service that provides access to current and past seasons of network programming through web-connected TVs and mobile phones, but doesn't reduce the ability of users to access Hulu online free of charge.

"It's a delicate balance between driving incremental revenue and disrupting an incredibly profitable, highly reliable revenue stream," David Bank, an RBC Capital Markets analyst, said of Hulu's new service at the time. Indeed, one doesn't want to bite the hand that feeds it, and for these video sites, dinner is a hefty serving of our clients' advertising.

The latest news on this front comes from video-sharing service Ustream, which recently launched a new paid membership service called Ustream's Premium Memberships. According to Tony Riggins, PR and marketing manager for Ustream, the service delivers a completely ad-free video viewing experience along with other bonus features. "The idea for its release came directly from our fans' feedback that tune into popular real-time educational channels," says Riggins. Educators, researchers, even the critically ill were approaching the site and requesting an ad-free alternative to its most popular streams, namely the Decorah Eagles and the Shiba Inu Puppies .

In fact, it has been primarily gamers and animal lovers who patronized the site's previous ad-free product, launched last October, to the tune of millions of views; Ustream says the average unique user of the Iowa eagle nest stream spent six hours and 10 minutes watching the content in April of this year. "That's 3 times more time spent than Gleeks watch new episodes of Glee, or 2,500 human years," Riggins says. Earlier this year, the year-old stream was said to have become the most-watched live stream of all time, outdoing even the Royal Wedding.

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