YouTube will increase the number of ads for those who use video hosting to listen to music. Thus, the team expects to transfer more users to a paid subscription in an updated music service, the launch of which is expected in the near future.
For everything you have to pay
Users are accustomed to free content on YouTube, but music labels accuse the company of depreciating music and demand an increase in payments. In order not to aggravate the conflict, the service decided to make some concessions. The listeners will either have to reconcile themselves with the advertising inserts between the video clips, or go to the subscription.
The new YouTube service, known by the code name Remix, is already being tested by thousands of Google employees. The service will combine existing YouTube Red subscriptions and Google Play Music, and in addition to listening to music, users will be able to watch clips and exclusive content (shows, movies and TV shows).
According to the head of the musical direction in YouTube Lira Cohen, they are preparing a large-scale advertising campaign, but when to wait for the launch of the service - is unknown. The main competitors of the music service are Spotify with more than 159 million subscribers (71 million paid) and Apple Music, whose audience recently exceeded 38 million.
By the way, last year, YouTube received about $ 10 billion in profits, the lion's share of which is advertising revenue.