While we have all visited YouTube for a laugh or ten throughout the years, but the struggle that YouTube Premium is experiencing is no laughing matter. YouTube Premium, a paid service, offers ad-free viewing and exclusive content to subscribers. On May 22nd of this year, they introduced YouTube Music, their competition against Spotify, Apple Music, and other industry giants.
YouTube Music was supposed to be an answer to Spotify, helping to boost profits. However, we have learned that this service is off to a slow start. Recent research shows that YouTube Music has failed to boost YouTube Premium in any significant way. As a result, YouTube Premium has fallen out of the top-10 video streaming services in the U.S. Ouch.
The current ranking is as follows:
- Netflix (duh.)
- Prime Video Users (Amazon Prime)
- Hulu (SVOD)
- HBO Now
- CBS All Access
- Sling TV
- DIRECTV Now
It falls out of the top-10 after placing 7th last year. YouTube Premium charges $9.99/mo, but when bundled with YouTube Music, costs $11.99/mo. There is no official count on how many YouTube Music subscribers there are, as they may feel a little sheepish at the lack of turnout thus far. Whether it’s due to lack of interest or failed marketing tactics, people simply aren’t interested in YouTube Music.
Many researchers question whether people are willing to pay for access to premium music videos and ad-free listening. However, it is important to note that Google Play Music will eventually merge into YouTube Music. With the backing of a powerful name like Google, this could be just the boost YouTube needs. However, Youtube has always been packaged as a free site, so coming to terms to pay for it may be too tough of a pill to swallow.
YouTube is still under fire within the music community. This stems from an industry-low payout per stream to its artists. Some suggest this may have been the reasoning behind the YouTube music overhaul. The argument is YouTube uses its premium level to defend against these compensation accusations.
One thing is for certain – YouTube Premium is struggling, and YouTube Music isn’t helping the cause.