YouTube set to launch ad-free music pay service
LOS ANGELES — YouTube's long-rumored ad-free music subscription service launches next week, but only for a select few.
YouTube Music Key is starting as an invitation-only beta, only accessible by the heaviest watchers of music videos on YouTube.
Meanwhile, YouTube's Apple and Android mobile apps got an update Wednesday with new music features, and they're free.
Within the app — the No. 3 most used smartphone app, according to comScore Media Metrix — there's a new home page for music and "millions" of new videos that hadn't been seen on YouTube before, according to Google, which owns YouTube.
YouTube has cut new deals with major labels Sony, Warner and Universal Music, along with many independents. In addition to expanding the catalog, you'll now be able play full albums.
(Yes, pop star Taylor Swift's music is on YouTube, but only select tracks from her current smash hit 1989 are available. Swift famously yanked the new album from the Spotify streaming music service, saying she felt streaming new music cheapened its value.)
More music is listened to on YouTube than any other website, says James McQuivey, an analyst with Forrester Research. Kids come home from school, and instead of listening to the radio, now just click YouTube to hear the latest hits, he says.
Pop stars Rihanna, Justin Bieber, Katy Perry, Psy, Shakira and One Direction dominate the most viewed YouTube charts, with views in the collective billions.
The pay service, once it launches, will be on track to generate $1 billion yearly in revenues, and profits of $200-$300 million, says McQuivey.
"This is such an obvious thing to do," says McQuivey. "Google is sitting on an asset. It has millions of customers coming every day to listen to music. To not make a play to deepen the relationship would be foolhardy."
Google offered USA TODAY a brief demo of the service Wednesday, and what's there is clearly a Spotify-like service with video. There is unlimited music that can be listened to on mobile devices (Android and iOS) in the foreground or background, and on desktop.
Beta testers will get access to Key for free for 6 months, and then $7.99 a month under promotional pricing. When it launches more broadly in 2015 it will cost $9.99 a month. Google would not disclose a specific date for the broad launch.
Meanwhile the Google Play Music store, which competes with Spotify, Rhapsody and Beats Music, in offering on-demand music for $9.99 monthly, isn't going anywhere.
Google says both offer different experiences, with YouTube aimed at video music viewers. But to entice subscribers to Key, Google is bundling in a subscription to Google Music as well, as part of the monthly $9.99 Key charge.
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