YouTube has finally announced its long awaited subscription music service, named YouTube Music Key. The service offers two features: ad-free music and music videos – for $7.99 per month.The new music service will work inside the main app, allowing ad-free music and music videos. Users will be able to save music for offline play, similar to Spotify and other music streaming services, for a limited time.
Background listening is also available on the YouTube Music Key, allowing the user to select a playlist and listen to it all with the phone unlocked. This is a first for YouTube, a feature users have been requesting for years.
It is surprising that YouTube has integrated the “Music Key” into the original app, with the new trend on mobile making one app for every purpose. Hopefully, this means the music streaming service will be available to a whole host of countries early.
The price for subscription is quite low too, compared to Spotify Pro at $10 per month and other music services around that range. YouTube is already a huge service for artists to make money, and Google might have been able to get better licensing deals.
Removing the ads means YouTube will pay a small percentage per play to artists and labels. We expect it will work similar to Spotify and other music services with no-ads, potentially meaning less revenue for big artists like Taylor Swift, who recently left Spotify.
YouTube’s previous attempts at paid incentives and channels have not went down well. Users on YouTube mostly age under 21, according to statistics published by the subsidiary, meaning it is harder for YouTube to monetize through traditional subscription methods.
Google’s own All Access music streaming service appears to be dead, considering YouTube basically offers the same music but for $2 less, it would be pointless for Google to continue this service into 2015.
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