YouTube is reportedly working on developing a music
subscription, according to Fortune and Evolver FM. Despite the fact that
the service is currently devoted to videos of all kinds, they are already the
top source for on-demand music in the world—so launching a subscription music
service makes sense.
YouTube’s music catalogue is farther reaching than many
companies’ catalogues, and they pay a lower per-song royalty than Pandora,
Rhapsody, Spotify, and others. In its current form, it’s already a formidable
source of competition. The launch of a new service devoted solely to music will
make it even more so.
If YouTube chooses not to launch a paid subscription
service, it may end up costing them valuable contracts with publishers and
labels. And because YouTube is owned by Google, it’ll end up costing both of
the companies money in the end.
“While we don’t comment on rumor or speculation, there are
some content creators that think they would benefit from a subscription revenue
stream in addition to ads, so we’re looking at that,” reads YouTube’s official
statement on the matter.
One positive for everyone will be the removal of so many ads
if YouTube does move forward with a music subscription service. For YouTube,
they won’t have to split so much revenue with ad companies, and for users, they
won’t have to deal with annoying ads for every single song they want to listen
to.
So will YouTube put Spotify, Pandora, and all the others out
of business? Only time will tell.
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