Google Trials Water Music Subscription | Can It Break Apple's Spotify Monopoly?

According to the "Financial Times" report, Google has sought to dismantle Apple's and Spotify's monopoly of the duopoly in the music distribution industry. It has substantially adjusted its music service last week, and for the fourth time tried to persuade billions of YouTube users to pay for music. Google will launch a new music subscription service on Tuesday and use YouTube’s most expensive advertising campaign to promote it. The service, called YouTube Music, mimics the Spotify model: a free, ad-supported feature-limited version One is a paid version with a monthly fee of $10, no advertising, and more features.

'The duopoly is not conducive to the development of the industry,' said Lyor Cohen, head of YouTube music business, who helped shape hip-hop culture in the 1980s and 1990s. He stated that Apple and Spotify’s dominant position Musicians and record labels felt terrible. Streaming music was considered to save the music industry, and Apple and Spotify streaming music services totaled 125 million.

Google had already tried to enter the field of paid streaming music, launched services such as Google Play, YouTube and YouTube Red, but no one service was successful, and competing services confuse users. At the same time, Apple and Spotify increased. Tens of millions of paying users have reversed the fate of the music industry in recent years.

YouTube’s latest move coincides with the growing importance of the music business to the company. YouTube is the world’s largest video site and is good at producing celebrity videos, attracting billions of views. Market research firm Nelson’s data shows The music video "Despacito" watched more than 5 billion times last year. At the same time, the critical music video "This is America" ​​reached 85.3 million in the first week of the lineup. Times.

Morgan Stanley analysts predict that by 2022, YouTube Music will attract 25 million paid subscribers and generate approximately $3 billion in annual revenue. However, analysts warn: 'Although we certainly take YouTube seriously, its Google The Play music service has existed in the market for many years. It has not actively promoted music subscription services. Will this time be different?

Executives in the music industry are cautiously optimistic about YouTube Music. 'They've been talking about music subscription services and it's been screwed up again and again,' said a recording company executive. 'But people are positive about it. This attitude has never been seen on YouTube before. This product will not completely change the music subscription business, but will be as good as Apple, Spotify's service.