YouTube launches “Music” streaming service

Google’s parent company Alphabet is entering the fiercely contested music streaming battleground with its new YouTube Music service

Drake, Spotify’s most streamed artist with 49m monthly listeners

Launch: May 22, 2018 (U.S., Mexico, S. Korea, Australia, New Zealand)

Selling point: App provides recommendations based on user’s listening habits, location and activity

Cost: YouTube Music (ad-supported)       Free $9.99
      YouTube Music Premium* (no ads)

Marketplace: Despite YouTube having over one billion monthly music users, it faces stiff competition from Spotify, Apple and Amazon

Predicted streaming subscribers by end of 2018
(Spotify will be bigger than nearest two rivals combined)


   $9.99   $9.99
   83m       58m
    
Global recorded music revenues by segment, 2017

Physical (CDs)      30%
Digital             16%
Streaming           38%
Performance rights  14%
Sync †               2%

24m Includes Prime Music (part of Amazon Prime service) and Music Unlimited ($9.99)
                      
Global recorded music industry revenues, 2000-2017

$30 billion 
25
20 
15 
10
5
0    2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Streaming ($6.6bn) overtook physical CD sales ($5.2bn) for first time in 2017
                        

*Also comes bundled with YouTube Premium video service for $11.99
†Music licence granting rights to synchronise music with visual media (film, TV, ads, games etc) 

Sources: YouTube, Reuters, Music Business Worldwide, IFPI Picture: AP © GRAPHIC NEWS