- YouTube recently signed deals with Universal Music Group and Sony Music Group.
- Warner Music Group agreed to a deal back in May.
- The deals with the three big labels pave the way for a new music streaming service.
The rumors of YouTube’s new music streaming service appear to be coming true. Earlier this month we told you about rumblings that the streaming platform would roll out a new subscription streaming service. Now, Bloomberg is reporting that YouTube has secured the necessary deals to make it happen.
According to the report, YouTube has just agreed to deals with Universal Music Group and Sony Music Group. Warner Music Group, the last of the big three music labels, agreed to a deal with YouTube earlier this year.
Universal confirmed that the agreement with YouTube will give artists more flexibility and better pay. In addition to the better royalty rates for rights holders, some songs and videos will only be available through this new paid service, according to a Bloomberg source. That source also indicated that earlier this year, Universal was able to take control of ad-supported channels. It also asked YouTube to improve the technology that scans for user-uploaded videos for copyrighted content.
YouTube is currently one of the most popular platforms on the internet to stream music. Users can currently stream music for free, and the only revenue that rights holders see are from ad-based payouts and what channels see from YouTube Red subscriptions. This is in contrast to subscription-based services like Google Play Music, Spotify, and Apple Music that generate more revenue for music labels. The lack of revenue and approach toward protecting copyrighted material lead to friction between the streaming giant and music labels. But, this deal appears to sort out all of their issues.
Details on the new streaming service are nil right now. We expect that it will launch sometime in 2018, but we don’t have details yet on what it will cost or what it will include. If YouTube expects to turn users into paying customers, it’ll have to provide an incentive for them to pay up. Hopefully, that isn’t by restricting content that is currently free to stream.
What do you think YouTube’s new music streaming service will look like? What features would you want and how much would you be willing to pay?