YouTube, a Google subsidiary, launched its subscription-based music streaming service "Music Key" on November 17. Positioned as a new tool to compete with Apple, it initially launched as an invitation-only service at a promotional price of $7.99 per month (the regular price is $9.99 per month). Ad Age reported.
Music Key offers ad-free streaming, and subscribers can also use Google's similar service, Google Play Music. It reportedly includes a new feature allowing users to search for entire albums by artists.
For the new service launch, YouTube secured deals with major record labels including Universal Music (part of Vivendi), EMI Group, Sony Music Entertainment, and Warner Music Group.
However, the mobile entertainment sector, where Google is investing to boost sales, is crowded with competitors like Beats Electronics (acquired by Apple for $3 billion in May), Pandora Media, and Spotify.
James McBibay, an analyst at Forrester Research, suggests, "YouTube has made this new move because Apple has started getting serious about its music streaming service." He points out, "If Apple can successfully bring users back to iTunes or Beats, the appeal of iTunes as a digital platform will become even stronger."
Meanwhile, subscription-based music streaming services face criticism from artists over insufficient compensation. Country singer Taylor Swift voiced her criticism of streaming services in the Wall Street Journal in July and removed all her albums from Spotify. However, according to a YouTube spokesperson, her music will be available on Music Key.
Source: Ad Age
YouTube Unveils Music Streaming Service
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