YouTube has finally confirmed that it is launching its revamped subscription service. The updated version of its YouTube Music service will be available in both a free, ad-supported model and a premium model will be coming with extra features like personalised playlists based on an individual’s YouTube history and other usage patterns. It will compete directly with services from Spotify Technology SA, Pandora Media Inc, Apple Inc and Amazon.com Inc. The news sent stocks of music streaming companies Spotify and Pandora lower by about two percent in the US.
YOUTUBE is an American video sharing website. Youtube came into service in February 2005. It was created by three former PayPal employees—Chad Hurley, Steve Chen, and Jawed Karim. Google bought this site in November 2006 for US$1.65 billion; YouTube now operates as one of Google’s subsidiaries. YouTube invites users to upload, view, rate, share, report, comment on videos, and subscribe to other users. It offers a wide variety of user-generated and corporate media videos. Available content includes video clips, TV show clips, music videos, short and documentary films, audio recordings, movie trailers, live streams, and other content such as video blogging, short original videos, and educational videos.
Most of the content on YouTube is uploaded by individuals and then the companies of various music and news channels. YouTube earns advertising revenue from Google AdSense, this is a program which targets ads according to the site’s content and audience. The vast majority of the YouTube videos are free to view, but there are exceptions, which includes subscription-based premium channels, film rentals, as well as YouTube Red, it is a subscription service which offers ad-free access to the website and access to exclusive content made in partnership with existing users.
YouTube Red is YouTube’s premium subscription service which offers advertising-free streaming, access to exclusive content, background and offline video playback on mobile devices, and access to the Google Play Music “All Access” service. YouTube Red was originally announced on November 12, 2014, as “Music Key”, a subscription music streaming service, and was intended to integrate with and replace the existing Google Play Music “All Access” service. On October 28, 2015, the service was launched again as YouTube Red, offering ad-free streaming of all videos, as well as access to exclusive original content. As of June 2017, the first season of YouTube Red Originals had gotten 250 million views in total.
YouTube Music is a streaming service which brings together a gigantic catalog of music albums, covers, remixes, live performances, music videos and more. It’s been described as an all-in-one type of deal in their official blog with both a mobile app and desktop programme planned and appears to be a direct competitor to Spotify and Apple Music. Following in Spotify’s footsteps, it will be available both as a free ad-supported service and a paid-tier called YouTube Music Premium.
NEW MUSIC STREAMING SERVICE OF YOUTUBE
YouTube owned by Google will launch a music streaming service, looking to use its popular internet video brand to tap the growing market for paid music streaming. YouTube Music, which will offer both ad-supported and $9.99-per-month versions, will be competing directly with services from Spotify Technology SA, Pandora Media Inc, Apple Inc and Amazon.com Inc.
The platform will launch in the US, Australia, New Zealand, Mexico and South Korea on 22 May before being rolled out in 14 additional countries, including the UK. Free, ad-supported accounts will be available, while the subscription tier, YouTube Music Premium, will cost $9.99 (about £7.40) a month.
Elias Roman, a product manager for YouTube Music, emphasised YouTube’s “tremendous catalogue of remixes, live performances, covers and music videos that you can’t find anywhere else – all simply organised and personalised”. Despite YouTube’s powerful position as the biggest music site in the world, with 1.3 billion users regularly watching videos, there is scepticism that it will topple the streaming music market leader, Spotify. YouTube is estimated to be on track to make $10bn in ad revenues this year, according to eMarketer. The Google-owned service paid $856m in royalties to music companies last year – only an estimated 67 cents per user annually.
YouTube Music will supersede Google Play Music, which will continue to exist as a cloud locker service, to which users can upload their music for portable streaming. Existing subscribers will receive access to the new service.
In addition, YouTube Red – the ad-free, paid-for version of YouTube – will be renamed YouTube Premium and include access to YouTube Music. Existing subscribers will continue to pay $9.99 a month, while new subscribers will pay $11.99. The launch of YouTube Music and the re branding of YouTube Red brings cohesion to the streaming strategy of YouTube and its parent company, Google.
In a blog post announcing the 22 May launch, the company said that YouTube Music (as it is to be known) will make “the world of music easier to explore and more personalized than ever”. Basically, the idea is that you will never need to leave YouTube for any of your music listening needs ever again. The gaps in YouTube’s existing music catalogue will be plugged by the new set-up, creating one mega service filled with music you’ll find on all the other platforms, and lots you won’t.
It had been thought that the new service might replace the Google Play Music streaming service, although the company says that this is not the case. Existing Google Play Music subscribers will have the premium version of YouTube Music bundled into their packages though. So that’s nice.
YouTube announced that it will now provide detailed credits for the music contained in official music videos on its entire platform, as well as user-generated content soundtracked with other people’s songs, via a new ‘Music In This Video’ section on its pages. The newly-displayed data now features on more than half a billion videos on the platform, the company reckons. On videos which simply feature music in their soundtrack, viewers will also now be able to link through to the official videos for the tracks they hear playing, as well as seeing who was involved in making them.
So, let’s wait for this and see what new has YouTube come up with