Youtube, the world's biggest video streaming site, will be launching a subscription based music service. The video streaming site is already a major hub for music listeners, as it is the highest visited site for music videos. YouTube generates huge revenues from these videos, as it sells ads along with them. A share of the revenue generated, is given back to the record companies.
Unlike Google Play, where the users have to buy the music to avail them, youtube music service will allow free streaming of music. Of course the free service will have adds thrown in, along with it. However a report from fortune suggests, a premium subscription which is is likely to be made available for the service, will present additional features along with add free streaming.
YouTube spokesperson, addressing the rumored report said, "While we don't comment on rumor or speculation, there are some content creators that think they would benefit from a subscription revenue stream in addition to ads, so we're looking at that."
The most popular videos in YouTube are music videos. Statistics say majority of users prefer youtube for their music needs compared to other music streaming sites and therefore, there is an enormous growth-potential for the music streaming service. Further more subscription fees will prove to be a lot less expensive, compared to digital purchases offered by some of the sites like Amazon, iTunes store and Google Play.
Grooveshark, presto and Soundcloud are some of the free music streaming sites, that are already in existence. Will YouTube's new service overshadow these services? Give us your views in the comments section bellow.