The music industry has been pressing YouTube to increase its royalties.
They currently pay one-seventh (If I remember correctly) of the rates other streaming services pay.
- 1 billion users.
- 1 billion dollars paid to record labels in 2016.
- 100 million users. (Around 50% are premium users)
- 2 billion dollars paid to record labels in 2016.
Nadhani ndio maana wanapush hizi streaming services sana.
The new approach marks a big cultural shift for YouTube and its parent. Google, a division of Alphabet Inc., has sustained the most popular video site and search engine in the world by prioritizing free, easy-to-use services.
“Our top priority at YouTube is to deliver a great user experience, and that includes ensuring users do not encounter excessive ad loads,” the company said. “For a specific subset of users who use YouTube like a paid music service today – and would benefit most from additional features – we may show more ads or promotional prompts to upsell to our paid service.”
Cohen said he prevailed upon his colleagues and bosses to make some changes to “be good partners” to the music industry. They will “smoke out” people who can afford to pay for a subscription and shepherd them to the new service.
“There’s a lot more people in our funnel that we can frustrate and seduce to become subscribers,” Cohen said. “Once we do that, trust me, all that noise will be gone and articles people write about that noise will be gone.”
YouTube plans a significant marketing campaign to back the new paid service, Cohen said.
Source - https://www.bloomberg.com/news/articles/2018-03-21/youtube-to-frustrate-some-users-with-ads-so-they-pay-for-music