YouTube’s (rumored) music service on hold

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Issue Date: 
Dec 4 2013 - 11:00am

From Issue:

But probably not for long. Keep in mind that everything written about YouTube’s entry into the subscription-music market is rumor, based on undisclosed sources. The latest twist: AllThingsD reports the rumored service will not meet its rumored launch timeframe (end of year), but is rumored to be planning a 2014 debut.

Despite the Big Question surrounding this speculation, we believe that Google will indeed put YouTube into play against Spotify, Rhapsody, Rdio, and other online jukebox platforms. What is the Big Question? This: Where is the added value to justify a subscription? YouTube is already the dominant listening service for teens, absolutely free of charge, easily shareable, robustly social, astonishing in scope, and rapidly expanding every day. 

But despite the odd fact that YouTube is already in the market, and dominating portions of it, Google probably perceives a business imperative to formalize the service and capture some portion of its roughly one-billion users as paying customers.

According to AllThingsD sources, the delay (in a timeline not acknowledged by the company) is due to product development complications, and not due to content licensing complications. Google already has relationships with music owners on both the YouTube and All Access sides of its music business. 

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