YouTube will close a $250 million account of the number of paid subscribers that its online advertising arm claims to have.
The company announced Friday that it would shutter the paid subscribers program in order to focus on its video ad platform, which YouTube announced earlier this month was generating $6 billion in revenue for the year ending June.
The company’s Chief Executive Officer Susan Wojcicki said the shutdown would be “staggeringly” costly to the company, which has $5.9 billion in cash and a $1.3 billion debt.
She added that YouTube would continue to support and grow the program.
YouTube’s new chief executive, Sundar Pichai, told investors last month that the paid subscriber program is “not sustainable.”
The company is also facing increased competition from social media companies like Facebook and Twitter, as well as online video providers such as Amazon and Google.
Pichari said the program will continue, but he also added that the company is working to improve its user experience and improve its product offerings.
YouTube’s CEO told investors that the program was not sustainable.
The announcement comes as the company’s stock has gained nearly 20 percent this year, while its revenue has plummeted.
The program has generated $2.7 billion in profit since it launched in 2014.