YouTube now plans to start its paid music service in March in order to catch up with competitors Apple and Spotify. This is actually a third attempt that parent company Alphabet Inc, is making to be gain momentum in the music market.
According to the details provided by Bloomberg, the new service could be beneficial for record industry who are looking for more revenues from YouTube. Warner Music Group which is one of the top three major record labels is already onboard—according to anonymous people who disclosed the information from private talks.
YouTube is also focusing to engage two other major companies including Universal Music Group, Sony Music Entertainment, and Merlin, a consortium of independent labels. According to the statistics from Apple and Spotify paid services the business is in recovery mode after a long decline for a decade, the music business is growing rapidly, some experts say the growth would be more significant if not for YouTube because YouTube is not compensating the music industry enough. Music is one of the most popular genres of Videos on YouTube, roughly one billion users land YouTube in a month for Music videos.
However, YouTube was not able to bring users to paid services like Spotify and Apple, this could be the fact that people have one thing in mind that YouTube is free and it should remain free to watch videos and listen to the music. Previous efforts indicated that YouTube was not able to gain much from the services launched in the past, Google Play Music in 2011, YouTube Music Key in 2014 which offered ads-free music videos to subscribers and YouTube Red in 2016 which offered all ad-free videos to subscribers are still struggling to generate desired revenues.
The new service dubbed “Remix” would offer Spotify-type on-demand streaming and would integrate elements from YouTube, said informers. YouTube is also engaging artists to help YouTube in promoting their new service.
YouTube now has a March deadline; it would be interesting to see what YouTube is bringing on the table and whether this service will be a success or another attempt to get the piece of cake from the Music industry.