Thursday, October 24, 2013

Report: YouTube To Launch On-Demand Music Service

YouTube is preparing a premium on-demand music service -- akin to a Spotify, but with video -- to launch later this year, according Billboard.

The service, designed with mobile listening in mind, will have a free component and a premium tier that offers unlimited access to a full catalog of tracks similar to what's already available via YouTube's parent company, Google Inc., via its All Access subscription music service. Premium features would include the ability to cache music for offline listening and removing ads.

The free tier is likely to be unlimited, on-demand access to full tracks on all platforms, including mobile, said several people who have been briefed on the proposed service. In that sense, the paid tier is more of a "soft sell" as YouTube's primary goal is to continue to amass ears and eyes to its mobile platform to sell ads.

But having a paid tier, with all the required licenses for a premium on-demand product, gives YouTube more flexibility in packaging and selling music with fewer restrictions on what it can do with the music, multiple sources pointed out. In addition, there are strategic reasons for developing a premium music video service that could be paired up with other Google products in the future, including Google Glass.

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