Youtube are rumoured to be launching a new music streaming service on smartphones and tablets. The service which is likely to be free (in some capacity) is expected to launch later this year on Android devices.
For those who arn't aware Youtube is now owned by Google and consequently we'd expect the new music streaming service to be exclusive to Google's Android platform. Google's fierce rival Apple are already working on their music-streaming service called iRadio which will also launch this year.
Youtube is in a great position to launch a music streaming service they already have long-term partnerships with the record companies. While, millions and millions of tracks are already available on their website !
Apparently, the new Youtube service will have some features that will work in tandem with Google Music. Google Music is a free service that enables users to store up to 20,000 tracks on Google's services making them accessible from any device.
Youtube Music - Ad-funded or Subscription-based ?
Youtube's current model is built around advertisements which funds the whole project and ensure that record companies and artists get money from making their videos and tracks available. However, at the moment we're not sure whether the new service will be ad-based or whether it'll include a subscription based model.
Our instincts tell us that a subscription based model is more likely because an audio-only service is much harder to monetize from adverts alone. However, Youtube could well have a free ad-funded service combined with a subscription based premium service similar to Spotify.
When will Youtube's Music streaming launch ?
Youtube's music streaming service is expected to launch in the 3rd quarter of 2013. We fear for the rest of the music streaming market because with Google's backing and Youtube's expertise they could easily steam-roller the competition.
Current music streaming services include Spotify, Sony Music Unlimited and Grooveshark. These companies will have to offer better value or more features than Apple's iRadio and Youtube's music streaming service to survive.
By Simon Thomas on 08th March, 2013