Tuesday, March 5, 2013

Youtube to Make Music Streaming Service

Google is planning on launching a music streaming service later this year. It will be similar to Google Play, but on YouTube and it will be free, but with a subscription fee. In a recent briefing with Fortune, they have said that, "content creators think they would benefit from a subscription revenue stream in addition to ads." So, based on this statement, I believe that this service will include ads, and have one of the subscription benefits be "ad-free service," but doesn't seem likely with Google. There is also talk that they are comparing a subscription service to a free service with ads. A factor in this is the audience of the site. According to a "Music 360" report, 64% of teenagers prefer YouTube for their music rather than any other streaming sites. This is a risky move for Google, as they are late into the competition, entering the ring with Spotify, Pandora, Rdio, Soundcloud, and Muve Music.

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