YouTube has recently hit the headlines with the news of the launch of a music streaming service as it has planned for using its popular internet video brand to tap the growing market for paid music streaming.
YouTube Music, which would offer both ad-supported and $9.99-per-month versions, would now compete directly with services from Spotify Technology SA, Pandora Media Inc., Apple Inc. and Amazon.com Inc.
The service would witness its launch on May 22 and include features such as personalized playlists based on a user’s YouTube history. The service is expected to eventually replace Google Play Music, the Alphabet Inc. unit’s existing music streaming brand.
The news has also sent stocks of music streaming companies Spotify and Pandora lower by about 2 percent.
To this, Ali Mogharabi, the analyst at Morningstar Research, added that “Google has an advantage given YouTube’s more than a billion users and viewers. So, it has opportunities to convert some into YouTube Music listeners or premium subscribers”.
To know more, the growing adoption of paid music streaming has helped wean a generation of music listeners away from free or pirated music. Thus, this would be leading to services such as Spotify and Apple Music becoming the recording industry’s single biggest revenue source.
In the words of International Federation of the Phonographic Industry, revenue from music streaming services have already overtaken sales of CDs and digital downloads for the first time in 2017.
YouTube Music would get launched in the United States, Australia, New Zealand, Mexico and South Korea on May 22. This would also roll out to more countries in the following weeks.
Separately regarding this, YouTube also added that it would revamp YouTube Red, the paid version of YouTube that comes with original programming, to include YouTube Music at an additional price of $2. Also, YouTube Premium, which would replace YouTube Red, would cost around $11.99.