YouTube Is Working On A Music Subscription Service No One Asked For
- Author: Kara Saunders Dec 10, 2017,
Dec 10, 2017, 3:48
YouTube and Google has released a lot of music related products including Google Play Music, YouTube Music Key and the video-focused YouTube Red. Sony Music Entertainment, Universal Music Group and Merlin, a consortium of independent labels, are reportedly in talks with the video streaming website.
YouTube plans to launch a new music subscription service in March, Bloomberg reported Thursday, in what would be Google-parent Alphabet's third attempt to challenge rivals Apple and Spotify. Combined, both Google-owned services have almost 7 million subscribers.
Clearly struggling to catch, Google has a new idea: why not launch a new music streaming service (once again)?
Another gripe, the report says, is Google's inability to convert free visitors into paid customers.
"This transaction will allow both companies to benefit from the global growth of music streaming".
According to Bloomberg, Warner Music Group has already inked a licensing deal for the platform.
But what about YouTube Red, isn't that good enough?
As of nearly a year ago in November 2016, Youtube Red was only reporting approximately 1.5 million subscribers, a minuscule customer base when compared to other streaming platforms like Spotify, who services, as of this summer, just over 60 million subscribers.
Making things a little spicier is the fact that music channel Vevo's contract with YouTube reportedly requires re-negotiation early next year. Major advertisers have also abandoned YouTube after two renowned publications discovered that the video service had monetized videos with pedophiliac comments.