In its effort to increase the revenue from YouTube, Google has launched a ad free subscription service “Music Key” which would make it easier for the users to find songs and play it for free. Music Key service which has been in news for a long period of time now and saw Google getting entangled in licensing terms with music record companies would allow the users to play millions of songs via YouTube. The subscribers to this service would be able to avail the service at USD 8 a month which is comparably lower to other similar sort of services offered by Google Android Play Store, Apple Inc’s Beats and Spotify.
YouTube’s Music Key services would show artists performing their songs too and for this they have come with a new tab devoted exclusively to music on its mobile apps and website. According to industry experts, Music Key would be giving stiff competition to Spotify and video site Vevo because they are targeting audience that listens to free music. Spotify is said to have 50 million users including 12.5 million subscribers. Experts believe that with this, Google would be able to make the music experience better on YouTube.
Music Key will initially will be offered on an invitation-only basis. The first set of invitation will be sent out next week in the US, United Kingdom, Spain, Portugal, Italy, Ireland and Finland. Users willl intially get Music Key free for a six month trial period after which it would cost USD 8 per month. The company has plans to increase the cost to USD 10 per month after some time. Already the world’s largest music lables Universal, Warner and Sony have made licensing deals with YouTube for the Music Key services. Other independent labels are also in the process of signing deals with YouTube and according to experts if Google generates USD 500 million in revenue in the first year that would be a very good number since YouTube is expected to sell more than USD 7 billion in advertising this year.
