Unlocking YouTube How YouTube’s Music Key Will Impact Subscriptions

Mark Mulligan

October 2014

YouTube is the globe’s leading digital music service but it delivers comparatively little back to the music industry in direct revenue. Even the one billion dollars paid out in Content ID revenues only represents for each of its one billion users per year, since the launch of Content ID in 2007. Now YouTube is poised to launch its long anticipated subscription service, Music Key. It should prove to be among the most compelling music product offerings in the marketplace, yet YouTube’s net impact on the subscriptions’ sector will still be net negative with its free tier sucking the oxygen from its premium competitors.

Companies mentioned in this report: Google, YouTube, Vevo, Spotify, Soundcloud, Grooveshark

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