Youtube is the most popular option for streaming music. The google owned company boasts that over 1.5 billion people use the site each month and many of them use Youtube for its music. Although on paper youtube is a video platform as opposed to a music streaming service they have now made integrated the two services as Youtube Music.
Youtube Music was initially released back in 2015. However on May 17th 2018, Youtube relaunched their music app which now includes a desktop player and redesigned mobile interface, more dynamic recommendations based on various factors, and use of Google’s AI technology to search for songs based on lyrics and descriptions. As part of this new rollout, Google offers a separate subscription service making it a more direct competitor to the likes of Apple Music & Spotify with a similar subscription price of $9.99 per month. The premium service offers ad-free and background/audio-only streaming and the option to download for offline playback for music content that is available on YouTube.
It goes without saying that Spotify & Apple Music are Youtube Music’s main competitors:
Spotify currently boasts a whoppping 170 million users half of which are paying for the premium version of the service.
Apple Music also holds its fair share of the music streaming market as a relevant player in the music streaming industry with 50 million users and it is still growing. As apple have not offered a free option for their music services this may have hindered the company's total numbers.
With Spotify and Apple music currently being the most popular or well known options for music streaming, Youtube Music face an enormous challenge with becoming a competitive player and they will need to avoid the mistakes that other music streaming services have made in their early stages such as Tidal.
Youtube has the most potential users and has integrated its video platform into a music streaming service but whether they can convert users to pay for their premium service is an answer only time can tell.
Youtube also has the opportunity to capitalise with offering businesses targeted and paid advertising as they currently do with Youtube to bring in further revenues for the google owned company.