In what could be the biggest threat to Spotify's growth yet, YouTube is putting the finishing touches on an on-demand subscription music service to launch later this year. The outline of the licensing deals were completed in May alongside the launch of Google's All Access music service; and industry insiders have been telling Hypebot about the YouTubes plans for weeks. But now specific details are starting to leak.
In addition to Spotify-like music streaming, YouTube will add video. Mobile is a the center of the company's plans including a free tier that includes unlimited on demand track and album streams, sources tell Billboard. The paid tier will remove ads and add cached music for offline listening.
Another, likely related leak, pointing to YouTube generated background audio on Android devices was uncovered by the Android Police blog. But will Apple, who have tussled with YouTube and Google in the past, also welcome the addition of a YouTube music service into its app store?
Will YouTube Care If Users Ever Pay?
Unlike most music streamers, YouTube and parent Google are less concerned with converting free users to paid subscribers. Afetr all, YouTube is already the go-to music source for many 12-25 years olds; and Google makes billions selling ads alongside content. Mobile ads are proving to be an even more profitable for the net beomouth.
Beating Beats Music
It also seems likely that YouTube's music service will launch ahead of Beats Music, which sources tell Hypebot is still finishing its licensing deals and building it's platform. The same sources suggest that unlike Spotify, Rdio and likely YouTube, who offer a range of options that allow free listening, Beats Music will be pay only, after a (yet to be determinded) limited free trial.