YouTube is set to launch its new music streaming service next March, with the name Remix, according to a report from Bloomberg. YouTube is planning to combined its YouTube Red video subscription service with its Google Play Music service. The new service, Remix, will offer both music and video to simply its offerings to consumers. This is to help avoid confusion by offering various different streaming products. This move on Google’s part is a good one because it helps to manage both aspects under one roof, making everything easier for subscribers.
Bloomberg says that the product will launch with two big deals struck. YouTube has secured deals with Sony Music Entertainment and Universal Music Group. In addition, the third biggest publisher, Warner Music Group, now also has a deal with YouTube, under more generous terms. The record industry long has criticized YouTube for its lack of payouts to artists and labels, despite music videos being very popular on its platform. These hurdles make it tough for YouTube to negotiate better terms with labels. It will be interesting to see how YouTube renegotiated with record label-owned Vevo.
Google in its part has time and time again tried to create its own music-centric products, but has failed to grab the attention of users like Apple or Spotify have. YouTube instead has released products like Google Play Music and YouTube Music Key to gain traction. While Google has continued to fail (to a certain extent), Spotify has soared past 140 million monthly users where 50 million of them are paid users. Apple Music on the other hand is over 30 million subscribers. Google on its part has never released user numbers but it’s estimated that YouTube Red had around 1.5 million subscribers a year ago, Bloomberg report. That being said, it will be interesting to see how Google approaches its new service and how successful it will be.