YouTube, the free video giant, has attracted over 50 million paid subscribers on its music services app. Google-owned Youtube started paid music services after heavy criticisms from record labels and Hollywood studios for providing music free on its video platform.
Youtube Music Platform Grows to 50+ Million Subscribers
YouTube has continued its legacy for decades as the one-stop destination for free videos available from local as well as global creators. Recently, Youtube made few changes to its services. First, the video platform announced a separate app named Youtube Music for music lovers. Second, it also announced ads free Youtube subscription. The platform first provides a trial service to the users. Once they are satisfied, subscribers can pay the subscription fee for the coming months.
Today, Youtube has announced that it has crossed 50+ million subscribers who are paying for YouTube Music. It also includes customers for YouTube Premium, who get music as part of their subscription, as well as customers still on a trial basis.
But, youtube did not disclose the revenue earned from these subscribers. When asked about the average subscription amount users are paying for these services, Youtube did not comment anything on the financial details.
For the last 10+ years, Google has tried the different subscription models for premium music services. But, it did not get much success. Launched in 2018, Youtube Music has finally figured out how to persuade many of its customers to pay for music. As per the Media report, YouTube now has around 8% of the world’s subscribers for music services. Spotify is leading the music market with a wide margin.
YouTube Music and the Beginning of Paid Music Era
YouTube Music’s success is good news for Google and its investors both. Due to the surge in Music subscriptions, youtube recorded $7 billion in advertising sales in the recent quarter, which is an 84 percent increment compared with the same quarter of last year.
Lyor Cohen, YouTube’s global head of music, considered the above success as twin-engine growth from Youtube’s main services and Youtube Music. Talking about the same, Cohen said, “The twin-engine growth story is real. Some people are prepared to pay with their eyeballs and those willing to subscribe. They are both super important.”
YouTube hired Cohen 5 years back to head its music-related operations.
The global music industry blamed the internet for the decline in its sales. The music firms lost a lot of money in the last 15 years due to piracy and technological advancement. Among all platforms, Youtube was criticized maximum to provide free music services. Music giants said that Youtube always focussed on advertisement business rather than subscription service. If Youtube converted just 5% of its 2 billion users it would have 100 million subscribers.
In Q1 of 2021, Cohen revealed that YouTube had paid out over $4 billion to the music houses over the previous 12 months. And, now the music industry is praising Google for its growth.
Talking about Youtube’s subscription services, Max Lousada, the chief executive officer of recorded music at Warner Music Group said, “Music has always been a pivotal part of their platform, so it’s great to see them become a dynamic force in subscription streaming too.”