The service has added around 1.8 million subscribers per month since October and now has around 8% of subscribers worldwide
YouTube is finally breaking into the market for paid music services. The Google-owned platform announced it had passed the milestone of 50 million subscribers.
This figure includes subscriptions to YouTube Music Premium and the broader YouTube Premium service that allows you to watch videos without advertising. In addition, subscribers still on trial are also counted. YouTube hasn’t shared yet though the revenue that derive from these subscriptions which cost 10 and 12 euros respectively.
Even though Spotify remains the first paid music service by wide margin, YouTube is the one fastest growing in the world, according to Midia Research. Suffice it to say that just a year ago the service had 20 million fewer users than today. Doing a quick calculation it turns out that YouTube Music has added approx 1.8 million subscribers per month since October and now has around 8% of global subscribers.
Spotify reported reaching 165 million subscribers in the second quarter of this year, while Apple and Amazon had 78 million and 63 million respectively at the end of the first quarter, according to Midia estimates. The difference with YouTube Music is that everyone these services came first: Spotify launched in 2008, Apple Music in 2015, and Amazon Music Unlimited in 2016.
The major architect of the change of course is Lyor Cohen, a longtime record executive who has worked with artists such as Kanye West and knows the world of music well. Cohen started working for YouTube 5 years ago. Thanks to Cohen, YouTube sought to strengthen its promotional tools by hosting live previews of the artists’ videos and making deals with record labels.
YouTube Music was not very successful for the first 10 months of launch, in mid 2018. Now things are going very well, especially with regard to the emerging record markets, as told by Robert Kyncl, YouTube’s chief business officer, who stressed the speed of growth in those contexts. So did Cohen, who wrote in his newsletter to note “Impressive growth in countries such as South Korea, India, Japan, Russia and Brazil”.
Cohen added that YouTube Music doesn’t want to “Take your foot off the accelerator” and who is investing in new features and benefits for members. Spotify and others are warned.