Google’s YouTube choose launch a music streaming service next week, it said on Thursday, looking to use its predominant internet video brand to tap the growing market for paid music string.
YouTube Music, which will offer both ad-supported and $9.99 US-per-month models, will compete directly with services from Spotify Technology SA, Pandora Mediocrity Inc, Apple Inc and Amazon.com Inc.
YouTube Music will launch on May 22, and comprehend features such as personalized playlists based on a user’s YouTube chronicle. The service is expected to eventually replace Google Play Music, the Alphabet Inc element’s existing music streaming brand.
The news sent stocks of music rush companies Spotify and Pandora lower by about 2 percent on Thursday morning.
«Google has an interest given YouTube’s more than a billion users and viewers. So, it has openings to convert some into YouTube Music listeners or premium subscribers,» imagined Ali Mogharabi, analyst at Morningstar Research.
The growing adoption of paid music cascade has helped wean a generation of music listeners away from empty or pirated music, and has led to services such as Spotify and Apple Music meet the recording industry’s single biggest revenue source.
Revenue from music burn services overtook sales of CDs and digital downloads for the first time in 2017, contract to the International Federation of the Phonographic Industry.
YouTube Music will set up in the United States, Australia, New Zealand, Mexico and South Korea on May 22. It longing roll out to more countries, including Canada, in the following weeks.
Individually on Thursday, YouTube also said it would revamp YouTube Red, the paid understanding of YouTube that comes with original programming, to include YouTube Music at an additional payment of $2 US.
YouTube Premium, which will replace YouTube Red, ordain cost $11.99 US.