YouTube Hold Talks to Launch Their Own Music Subscription Service
Mike Sanders / 3 years ago
YouTube Music Subscription
YouTube and their owners Google have pretty much cornered the online video hosting market. While Twitch did find a niche with their live streaming that YouTube was a little slow to catch-up to, they have largely got it sewn.
This is, of course, assuming that they can stop annoying their content makers.
In a report via the Independent, YouTube might be looking to branch out again, but this time into the music world.
Yes, YouTube is planning to set-up their very own music subscription service. This will have them going head to head with much more well-established companies in the music industry such as Spotify.
It is thought that YouTube will use a 3rd party company, Alphabet, to launch. The plan is for them to go live in March 2018.
Can they be successful?
The question of how successful they can be is difficult. While there is always room for another music streaming service, there are conditions to this.
Spotify and Apple have a pretty tight stranglehold on the market. To beat them YouTube would have to either undercut them or offer something the others are not.
YouTube are no strangers to competition though. They recently announced that they were pulling the video app from Google products in a row over product sales.
Apparently, though, discussions are already well underway. Reports suggest an agreement with the Warner Music Group has already been made. In addition, there are currently ongoing discussions (or negotiations) with Sony and Universal Music. While these 3 companies do not represent the entire market, they certainly represent the mainstream.
I also think that if they really are going to get a slice of this pie, the best way that they could do it would be to undercut their rivals. It’s hardly a new business tactic, but it often works well.
What do you think? Is there room for another music subscription provider? – Let us know in the comments!