Google’s video site, YouTube now has more than 50 million paid subscribers to its music service as it competes with Amazon, Spotify and Apple. This is a major milestone for YouTube that has long been criticized by record labels and Hollywood studios for giving away their work for free Bloomberg reported.
The 50 million figure includes people paying for YouTube Music, customers for YouTube Premium, who get music as part of their subscription, as well as customers still on a trial basis.
Launched in 2018, YouTube music is now the fastest-growing paid music in the world according to Midia Research, and accounts for about 8% of the world’s subscribers. Spotify is first by a wide margin. YouTube’s free advertising-supported business also makes it one of the largest media businesses in the world.
This milestone comes as Lyor Cohen was hired five years ago by YouTube to run its music business. Cohen previously ran one of the three major record companies, Warner Music Group.
Under Cohen, YouTube has sought to bolster its promotional tools, including a new product for artists to host live premieres of their videos, and to interact with fans in real time Bloomberg reported
YouTube reported advertising sales of $7 billion in the most recent quarter, up 84% from a year ago. Booming subscriptions gives YouTube two sources of growth, the foundation for most of the world’s great media businesses.
Subscribers pay $10 a month for YouTube Music which is free from ads, or $12 a month for YouTube Premium, which includes music and additional video offerings.
In Nigeria, YouTube Music Premium cost 900 naira a month (around $2.44) while YouTube Premium – which includes YouTube Music Premium – cost 1,100 naira a month ($2.99)
Earlier this year, Cohen said that YouTube had paid out more than $4 billion to the music industry over the previous 12 months.
What they are saying
Robert Kyncl, YouTube’s chief business officer, “I don’t think we expected we’d get to 50 million this fast. It’s gone better than what we thought we would do.”
Max Lousada, the chief executive officer of recorded music at Warner Music Group. “Music has always been a pivotal part of their platform, so it’s great to see them become a dynamic force in subscription streaming too,”