YouTube Music and YouTube Premium: how Google is taking on Spotify and Netflix

INSUBCONTINENT EXCLUSIVE:
Music on YouTube is big, Really big
More than 1 billion people visit YouTube for music each month
But it’s never been brilliant as a straightforward listening service. Its latest offering, YouTube Music, is designed to change that
But with Apple and Spotify dominating music streaming, is YouTube Music too little, too lateWhat is YouTube MusicIt’s a new music
streaming service from Google.Doesn’t Google already have a music streaming serviceYes, it does: Google Play Music. What’s the
difference between YouTube Music and Google Play MusicThey have different libraries
With YouTube Music you don’t just get official songs
You get the very many remixes, covers, live versions and parodies YouTube hosts too, as well as music from people who haven’t got record
deals
And of course you also get video.What unique features does YouTube Music haveOther than the aforementioned tracks, YouTube Music can search
for particular lyrics and even use natural language: Google says you’ll be able to search for “that hipster song with the
whistling”. The app will also offer contextually aware recommendations, so for example if you’re at the airport it’ll create a
playlist about fire, crashes and death.Don't worry, it won't really
But it will suggest pumping tracks for the gym or relaxing music before you travel
Discovery is clearly going to be a big part of the YouTube Music experience: it will offer thousands of themed playlists for particular
genres of music or moods. What will YouTube Music cost$9.99 per month in the US, with other territory pricings to be confirmed.Will there
be a free version of YouTube MusicThere will
It’ll be ad-supported.Where does YouTube Red fit with YouTube MusicThat’s a good question
It’s being rebranded as YouTube Premium and will now include YouTube Music as well as Google Play Music
Because it also offers offline video it’ll be more expensive at $11.99 per month
If you’re a YouTube Red subscriber in the US, Australia, South Korea or Mexico your monthly fee won’t go up when Red becomes Premium
But if you’re not already a subscriber and you just want ad-free video, the price just got hiked.If I pay for YouTube Music, will it get
rid of all the ads on everythingNo, just the ones on music
If you want to remove the ads from everything you need YouTube Premium.Will I get YouTube Originals with YouTube MusicNope
That’s a Premium feature.Can I download YouTube videos with YouTube MusicGuess what That’s a Premium feature too
YouTube Music enables you to download music, but not other YouTube content. When can I get YouTube MusicIf you’re in the US, Australia,
New Zealand or Mexico the rollout starts on Tuesday 22 May with an early access programme
A wider rollout will happen “in the coming weeks”
The service will launch in Austria, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Russia, Spain, Sweden, Switzerland
and the United Kingdom “soon”
You can register your interest on the Coming Soon page.Will I need an app to access YouTube MusicGoogle has redesigned its mobile app and
created a new desktop player for YouTube Music, but we’d expect it to work in your web browser too
After all, it’s YouTube.Is YouTube Music a Google Play Music killerIt doesn’t make sense to run two similar streaming services under the
one roof
Google Play Music’s days are clearly numbered, we think.Is YouTube Music a Spotify or Apple Music killerWe doubt it
That’s partly because of sheer numbers – as of January 2018 Spotify had 70 million paying subscribers and Apple Music is expected to
overtake it in the US this summer – and partly because everybody knows that YouTube is a free thing that is free
According to the International Federation of the Phonographic Industry (IFPI), 85% of YouTube users go there to listen to music for free.We
think the bulk of YouTube Music users are going to stick to the ad-funded version, and that a fair few will do so while running adblocking
tools.Don’t forget about Amazon, either
Its Alexa push is potentially putting Amazon Music into a lot of homes.The big problem here is that Google and its video creators don’t
make a ton of money from subscriptions – it’s an advertising business, and that’s where the money is
Speaking to Digiday in February, network executives said that YouTube Red was only bringing in around 7% of “YouTube-monetised” revenue
When other sources of income such as sponsorship were taken into account that figure was as low as 1%.To be fair, the lack of interest in
YouTube Red is partly because YouTube Red was only available in a handful of territories
But one of those territories is the US, which is the largest market for streaming music in the world
There are 30 million people in the US paying to stream music
Very few of them are YouTube Red users.As industry analyst Mark Mulligan told The Guardian, “YouTube has done this to appease the music
labels who like subscription models but it is not going to be a Spotify killer
YouTube is all about generating advertising; it has a strategic disincentive to make its music subscription service work because it is an
ad-funded business
I doubt we will see it become a leading music subscription service.”There’s another issue
In late 2017, Billboard announced that it will devalue YouTube streams in the algorithms it uses to calculate chart placings
In plain English that means for the charts, a Spotify, Tidal or Apple Music stream will be worth more than a YouTube one
If you were a record company, that will affect where you decide not just to run your ads but where you carry out promotions such as the
service exclusives that drive so much traffic
Initially at least, that’s going to make YouTube Music less attractive than its streaming rivals.ZSqzqRvFTPERHy6FSvkqWW.jpg#