YouTube has confirmed that it will provide an ad free paid service called YouTube Music Pass. It will be a music streaming service that will be released somewhere over the summer.
Users will be able to download full albums for free to listen to offline. The price has yet to surface but one thing is for sure, it will be available globally to all smartphones, making it interesting to see how Google will join this with it’s own Play Music All Access app.
YouTube has already manage to strike an agreement regarding licensing with huge labels such as Sony, Universal and Warner. Sadly, the same is not said when it comes to indie labels who are claiming that YouTube are proposing severely undercut royalties as compared to other streaming apps such as Spotify and Rhapsody.
Robert Kyncl, the Vice President and Global Head of Business for YouTube has told the Financial Times that if indie labels do not agree to the terms put forward by YouTube, the video content from these labels will be blocked from YouTube in ‘a matter of days’. While Kyncl went on to say that signing all labels ‘is not likely an achievable goal’, the VP did explain that the disagreement with the indie labels will not hinder the launch of YouTube Music Pass.
It seems that blocking certain music labels from the free streaming website might be a necessary protocol if the paid service is to provide a consistent viewing experience for users. Why pay for a service when you can view the same exact videos for free? YouTube reps went on to comment that the new streaming service will “bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year.”
It should be kept in mind that if the indie labels do not give in and sign the dotted line, videos from artist such as Adele and Arctic Monkeys will be blocked on the website. It seems that this new service is going to create a big wedge between indie labels and YouTube. Thinking about it, if the videos are blocked, we’re talking about a major loss for indie labels who need music streaming services like YouTube to get publicity and exposure.
All in all, it seems like this might get a bit messy before we actually see and are able to use this new service.
Source: Financial Times (subscription needed)
Via: Android Central