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YouTube's new music streaming service has some obstacles to overcome

11 Décembre 2017

The service, YouTube's latest foray in the music streaming space, will include on-demand streaming capabilities, similar to Spotify's, and offer video clips. Warner Music Group, one of the world's three major record labels, has already signed on, said the sources, who asked not to be identified.

The service is rumoured to be called "Remix" delivering on-demand music streaming. The music service will help raise revenue for music labels. YouTube has a ton of content - such as mainstream songs, cover songs, remixes, and old obscure songs - that other platforms like Spotify and Apple Music don't.

YouTube is also in talks with the two others, Sony Music Entertainment and Universal Music Group, and Merlin, a consortium of independent labels, they said. This service is all set for launch in March, and has been named "Remix".

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Music is one of the most popular genres of video on YouTube, which attracts more than a billion users a month. Google introduced audio-only streaming service Google Play Music in 2011.

Google is going up against established players with large subscriber bases. YouTube Music Key came along in 2014, giving subscribers ad-free music videos. YouTube has not had a successful run like Spotify, which has almost 140 million monthly users or Apple, which has over 30 million subscribers, when it comes to paid music service. That morphed into YouTube Red in 2016, letting users watch any video without advertising. Given Google's limited success at launching music streaming services, the competition it faces elsewhere, and the popularity of its free YouTube tier, the company might have a hard time convincing consumers to pay for its streaming service.

YouTube's new music streaming service has some obstacles to overcome