YouTube may be launching two subscription-based services before the end of 2015
YouTube is preparing to launch two separate subscription-based services before the end of 2015, multiple sources say. One of the services, Music Key, has been in beta testing since November 2014 and allows users to stream ad-free music and music videos starting at $8 a month. A Music Key subscription gives users access to Google Play Music, which competes with Spotify for streaming services. The second service is unnamed, and will target YouTube’s premium content creators. This service will come with a paywall, but will allow users to save videos offline and watch videos ad-free.
YouTube’s strategy will allow the company to make money in two different ways, similar to how cable companies bundle sports and movies into different packages for different customers. Some of YouTube’s deals with major labels will be expiring in 2016, so there is some speculation that the launch of Music Key is partially leverage for the upcoming negotiations about renewing deals. YouTube is still the largest music streaming platform in the world, so labels and other music industry players are beholden to cooperate with the company though they may not always agree with its practices.
Via: The Verge