YouTube SVOD Channels Hit With Hidden Cost

Closed captioning law takes a bite out of producers’ wallets

Launched in early May, YouTube’s paid subscription channels offer studios a low-cost way to monetize recycled content. But according to The Hollywood Reporter, one federal equal access law is tripping up content producers with a hidden cost.

Signed into law in 2010 by President Obama, the 21st Century Communications and Video Accessibility Act requires closed captioning for all television broadcasts posted on the Internet. (Short news clips are exempt.) While most shows already carry closed captions, TV content also must be specially coded for subscription video-on-demand, which is the mechanism by which YouTube delivers its fare.

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