YouTube music service deferred while Google reevaluate business model and development

Apr 5, 2014
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YouTube music service deferred while Google reevaluate business model and development

They may not have planned it this ways, but YouTube is the go-to channel for music and videos amongst the young audiences between 12 and 24. Taking into consideration its billion plus monthly users, that includes this segment, a paid on-demand music streaming service seemed the natural progression. Although Google had originally planned to launch the service late last year, the project is still a work-in-progress due to several reasons.

YouTube Music Service's inauguration has been pushed to the second quarter or even later. Google’s desire to make a smashing debut is one of the biggest reasons why the rescheduling has occurred. The top executives know that they have only one chance at making the right impact, as they step into a market that is already flooded with paid on-demand services for music. On the legal aspect, YouTube and parent company Google have all their licensing contracts in place.

Unlike how Gmail was under Beta testing for several years, Google doesn’t want to take that chance with this new product. Since the service is similar to Spotify and Rhapsody, it is imperative that the right product is juxtaposition next to them. One of the biggest roadblocks that the executives are facing is the pricing fees and the mindset of the users. Thus far, the platform is known to be a ‘free for all’, so to be taken seriously as a streaming service, the business model should not interfere with the current users' engagement. For the moment, the premium music service will support enhanced features and give access to a comprehensive catalog. To avail this, one will have to pay $10-a-month service with an alternate of using an ad-supported account for $5 a month.

On the design front, the dilemma is regarding what clip do the show to users who are viewing tracks that don’t have an official video. Should it be a static picture with facts and trivia or an "art video" that showcases active pictures or generic stock video? Until all these questions are answered and solutions implemented, we don’t anticipate the service to roll out anytime soon.

SOURCE: Billboard


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