BI Chinese station reported on December 20
Sources said on Tuesday that YouTube had signed a long-term agreement with two major record companies, Sony Music and Universal Music, which laid the solid foundation for Alphabet's launch of Alphabet's new streaming music service in 2018.
YouTube plans to launch Remix, a paid music service that will be Alphabet's third attempt to catch up with rival Spotify and Apple's paid-music service. Previously, Time Warner, one of the top three record labels in the world, had reached an agreement with YouTube on cooperation in new services.
According to sources, YouTube signed a contract with Sony Music, Universal Music has been working for two years. Following the contract signed with Warner in May of this year, YouTube signed a cooperation agreement similar to Time Warner with Sony Music and Universal Music. The alliance with the three record labels means that YouTube has tackled the major hurdle for launching Remix.
Spotify, the music service provider for streaming music, is currently a leader in the premium music industry. The company has 140 million active users worldwide and more than 60 million paid subscribers. Earlier news that Spotify is preparing for an initial public offering next year. Apple Music Music subscription service has more than 30 million subscribers. While paid music services such as Spotify and Apple Music have revived the global music industry, which has been in the doldrums for nearly two decades, some major record labels still say they will still have higher revenues if they are not YouTube. The reason the labels blame YouTube is because many users listen to music for free on YouTube. As a video site with over 1 billion users, music is one of the most popular video types on YouTube.
Despite several attempts to launch paid music services, YouTube is not as successful as Apple or Spotify, making it a paid user. Back in 2011, Google launched Google Play Music, an on-demand music service that features time-based and location-based playlists and many other free features such as uploading personal music libraries. In 2014, YouTube introduced Music Key, a premium streaming music service for $ 7.99 a month. Like the music streaming industry, YouTube is a product that eliminates advertising and lets users enjoy unlimited music on their computers and mobile devices. This service evolved into YouTube Red in 2016, allowing users to remove ads from all videos.
Earlier news that YouTube's new service internally called "Remix", which includes Spotify-like on-demand streaming media services, as well as the integration of video clips from YouTube. It is reported that, YouTube has been with the singers began to contact, hope they can help promote this new service.
YouTube must overcome a few obstacles to meet its goal of releasing new services in March next year. In addition to the top three record labels, YouTube is still negotiating with Vevo, who distributes music videos for Universal and Sony. Although the music industry wants Red to focus on music, YouTube later adjusted it to become an original video block.
YouTube hired Warner Music Group's top executive, Lyor Cohen, last September as global music director, seeking to strengthen ties with the recording industry. YouTube and the record industry had more than dispute. Record companies often claim that YouTube does not pay the artists enough money. Earlier this year, Google also transferred many Google Play Music employees to YouTube, and Cohen also announced that it will develop a new paid service.