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YouTube to Launch Paid Music Service Targeted at Mobile Users
Oct 30, 2013 - With all the talk in our industry about the recent success of iTunes Radio, it might surprise you to know that another industry giant is about to start up a music service of its own. By the end of 2013, YouTube will introduce a paid-subscription music service, according to Ben Sisario in the New York Times. The new service will cost $10 per month, and be tailored to mobile devices. Music and videos will be presented without commercial interruption.
The article goes on to say that YouTube has experienced a dramatic increase in mobile access -- at 40 percent now, up from only 6 percent two years ago. Lower advertising rates have caused some labels to block their content on mobile devices. However, the new paid service will allow record companies to gain larger royalty payments from YouTube, which has become the "dominant listening platform for young people all over the world."
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