The video platform from Google, Youtube, is planning to launch a music service in ‘streaming’ as Fortune magazine says . The service would be ready by the end of this year and would require a subscription to access.
Youtube has become one of the major Internet platforms not only to see and discover new videos but also for listening to music. From Youtube users can view video clips of their favorite artists, allowing them in turn enjoy the song itself, and also video assembled by users with these songs.
Aware of this use by users, the YouTube team working on a system to monetize this behavior. The video platform of Google is working on a music service streaming, via a subscription to receive some additional features when listening to music, and to remove advertisements between songs .
Currently, the business model is based on Youtube place small ads that play before the video that the user wants to see or ‘banner’ integrated into these . The benefits of these ads are shared between the video site and the company or the user who uploaded this video.
A YouTube spokesman says: “While we usually do not comment on rumors or speculation, some content creators who think they would benefit from a revenue stream through ads plus a subscription, so you’re looking at” .
Although the market for music via streaming, and is a bit saturated with companies like Spotify, Pandora, Rdio or Soundcloud, the advantage that tell Youtube fame is having and the large number of registered users and channels created.
In addition also has the support of some record labels like Warner Music that could have been associated with YouTube since the company received 25 percent of its revenue last year for digital content playback via streaming, as its quarterly reports .
A part of the content that users have access to pay subscription, Youtube is planning to leave some free content for all other users . This is similar to the strategy followed by the Spotify service where users can listen to music without paying, but the songs are played between advertising and publicity.
As in all previous platforms music via streaming, that have been created, there is concern that if offered a free model listeners get used and not pay the subscription for music and, therefore, revenue drop. It will take the model will Youtube in the event that this service see the light at the end of the year.