YouTube releases new streaming products to rival Apple, Spotify and Amazon

YouTube plans to launch a new music streaming service, YouTube Music, alongside an advert free paid-premium service on May 22 that will replace Google Play Music.

An advert filled service, YouTube Music will be available for free, and a second paid membership service without advertisements, YouTube Music Premium will be available at $9.99 a month. And YouTube Premium that has been renamed YouTube Red subscription service will cost $11.99 a month.

The new service is said to rival Apple, Spotify and Amazon with the new, “tremendous catalogue of remixes, live performances, covers and music videos that you can’t find anywhere else – all simply organised and personalised” as Elias Roman, a product manager for YouTube Music labelled it.

Meanwhile, YouTube’s global head of music, Lyor Cohen, noted that he isn’t focused on the competition in the music streaming industry but instead sees a “great opportunity” ahead. “I don’t think it’s a winner-win-all category,” Cohen said. “YouTube music has the largest consumption of music around the world.”

There are however, scepticism that YouTube’s new service will topple the streaming music market leader, Spotify despite its powerful position as the biggest music site in the world with 1.3 billion regular users.

According Mark Mulligan, an analyst at MIDiA Research, “YouTube has done this to appease the music labels who like subscription models but it is not going to be a Spotify killer.”

He added: “YouTube is all about generating advertising; it has a strategic disincentive to make its music subscription service work because it is an ad-funded business. I doubt we will see it become a leading music subscription service.”

The new streaming service will be launched in the US, Australia, New Zealand, Mexico and South Korea before being rolled out in 14 additional countries, including United Kingdom.