YouTube released its YouTube Red subscription service in November 2014. At the time, the service offered an ad-free experience across the platform. Original content soon joined the platform with varying degrees of success. A variety of extra features were thrown into the mix as well. According to sources, YouTube is about to replace the service with two “new” services: YouTube Music and YouTube Premium.
Details On YouTube Music and YouTube Premium
YouTube Music essentially replaces YouTube Red as a music service. Subscribers won’t see ads on music videos, and music can play in the background on mobile devices. Also, subscribers can download songs in order to play them later or offline. All of this costs $9.99 per month, like the existing YouTube Red subscription. The new service is meant to compete with Spotify and Apple Music, among a number of other streaming services.
For better or worse, YouTube Premium is an add-on to YouTube Music. Subscribers to YouTube Music only receive an ad-free experience on songs and music videos. Ads will still play on regular YouTube videos. To experience no ads, an individual must then sign up for YouTube Premium, a $2 add-on to YouTube Music. This extra package extends the features of YouTube Music to all videos while adding access to YouTube Originals.
Why Is YouTube Making These Changes?
YouTube Music is designed as a music streaming subscription for the masses. It’s supposed to compete with other streaming services. Unlike YouTube Red, Music provides more revenue for record labels and artists. Most record labels complained about the revenue produced by YouTube Red. As for YouTube Premium, this service helps YouTube gauge whether consumers are willing to pay for access to its original content.
If consumers pay the extra $2, then YouTube knows its original programming is worth investing in. On the other hand, a lack of YouTube Premium subscribers could save the company the headache of pouring millions into original content. The main moneymaker here for YouTube is YouTube Music. Undoubtedly, the company hopes YouTube Premium and original programming will also be a major revenue driver after the service is released.
Consumers will have to decide whether they want to pay for YouTube Music and YouTube Premium. Both services together cost $2 more than YouTube Red, which won’t sit well with current subscribers. Nonetheless, each service provides valuable features to YouTube most dedicated users that would rather not deal with a constant stream of advertisements.