Wednesday, November 12, 2014

Google subsidiary YouTube launches subscription service for music – Reuters

Google subsidiary YouTube launches subscription service for music – Reuters

Mountain View The video platform YouTube expands its focus on music with a subscription offer from. The payment service, a user is able to manage without ads and music can also download to be able to hear them without an Internet connection, the Google subsidiary announced on Wednesday.

The service called “YouTube Music Key “should first be tested in Test of invited users. The subsequent price should be $ 9.99 a month. For’ll also access to Google’s streaming music service opened with over 30 million songs.

Among the start-countries besides the US and Britain and France. In Germany, where Google and the collecting society GEMA can not agree for years, the service will not initially be available.

YouTube has over a billion users. Especially young people access to the platform, to listen to music. If Google succeeds, only to win a small proportion of them for a subscription offer, YouTube could become a heavyweight in the music streaming.

The current market leader in streaming music, Spotify, currently has 12.5 million paying users. The number of streaming users is growing faster and faster, while business with Music Downloads shrinks.

The start of the subscription service was made possible after YouTube and the independent music label with artists like Adele and the Arctic Monkeys their long dispute attached any. In recent days, after months of tough negotiations had been reached an agreement, told the “Financial Times”. So far, the central source of revenue for YouTube are the ads that are displayed before the start of the video. The platform involved the music industry in the revenue.

The Google-daughter had threatened to ban the music of little companies all from the platform if no deal is reached. It was about the remuneration of musicians and labels for the subscription service. The independent companies had the original Google offer rejected as too low, as it was announced in June. With the big music companies, which control about 90 percent of the market to YouTube had already agreed.

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