Apple Music Has 10 Million Subscribers

It looks like Apple Music has beaten the predictions by making it to 10 million subscribers much faster than anticipated. Although no official announcement has been made, the Financial Times has confirmed that Apple has achieved that number, proving that the 90 day trial period for the service appears to have worked.

In contrast, it took Spotify 6 years to get to that number, although that was well before streaming became a common practice.

Speaking of Spotify, rumors are that its paid subscriber numbers have risen to 25 million users as well.

All this spells great news for artists, bands, labels and publishers. Just from those 2 services, there are more than 15 million more paid subscribers than last year at this time, which would be about a 30% increase.

Of course, we've yet to hear about YouTube Red's subscriber numbers yet, the $9.95 per month service that eliminates adverts from your videos. That could also give those subscriber numbers a boost, although the feeling is that if the numbers were actually that good the company would be boasting about it already.

Regardless, it looks like streaming has at least turned a small corner as more and more people are finding value in paying for their music than getting it for free.

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Spotify Still Leads In Paid Streaming Customers

It looks like Spotify is still in the lead in terms of paying customers, if this chart from Statista is any indication.

The chart shows that Spotify has a handy lead over Apple Music at the moment, although it's yet to be seen just how many people buy into the YouTube's new Red service, which could change the balance of power here.

A couple things to keep in mind when looking at this chart.

1. There are only a bit more than 40 million paying customers for streaming at the moment, so there's a lot of room for growth.

2. The chart only looks at Western services, and doesn't include any from Asia, where people have been used to paying for music for some time.

You will find more statistics at Statista

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YouTube Debuts Its "Music" App

Don't look now but YouTube just launched another music app. This one is fittingly titled YouTube Music and is an audio-only version of its recently launched YouTube Red service.

YouTube Music is free to download, and there's a free, ad-supported tier, but you unleash its power if you become a YouTube Red subscriber for $9.99 per month.

The experience is optimized for music and allows you to search for a particular song from its 30 million licensed tracks. The key here is that when you search in the app, you'll only get music-related results.

It should be noted that the app doesn't replicate Google Play Music (which is included if you sign up for Red) as it doesn't allow you to create a playlist. What it does instead is create a playlist for you based on what you've listened to before as well as some songs that it thinks you'll like.

Of course, its ad-free if you've signed up for Red, but it's yet to be seen if that will be enough to attract new users.

If you're using either YouTube Red or YouTube Music, let us know what you think. Is it worth the money?

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YouTube Will Cut Labels Off If They Don't Sign Up For Red

If you're a record label or an artist with a large YouTube following, you may find your videos are no longer available to view if you didn't sign up to be part of the network's new Red subscription service that will launch this week.

YouTube sent a letter to content creators a few weeks ago telling them if they didn't sign on by the October 22nd, their videos would be hidden from non-paying viewers as well as well as Red subscribers. Even if they're not hidden, they won't be available for monetization.

According to YouTube, 98% of content creators have signed on so far, but there are many holdouts, among them Disney and many indie labels.

These holdouts, like many of the creators who have signed on, claim that the 55% payout from YouTube is insufficient compared to virtually every other service (who pay at least 70%).

In fact, it's been estimated that the total monthly royalty payout from Spotify is 3 times as much as YouTube, despite having a tenth of the user base.

YouTube Red launches tomorrow, and it will be interesting to see what the reaction will be. Regardless of how the public feels, you can be that content creators will continue to be unhappy.

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YouTube Red May Not Be Attractive To The Exact Audience It Seeks

YouTube finally announced its new subscription service today, and although the new Red service is somewhat different than last year’s beta test of Music Key, the basic concept still holds true - you now have the option to pay for something that’s widely available for free.

YouTube Red is slated to launch on October 28th, and will bring ad-free viewing at a cost of $9.99 with a free one month trial period. Red will only be available in the US at first, with a world-wide rollout to come in early 2016.

Getting people to pay for something that they’ve been trained to get for free may not be easy though, if my small sampling is any indication.

During a presentation I gave to a class of about 40 college students yesterday, I asked them how they consumed their music. Just about all of them said via YouTube and Soundcloud (Spotify and Apple Music had only one student subscriber each). 

When asked how many would pay if it were ad-free, the group erupted into laughter and indicated with a no-doubt-about-it “no” that they wouldn’t consider paying for the privilege anytime soon (to be fair, one student did say that she might consider it).

If that’s any indication of the widespread feeling of the age group, then Red may not be much of a player with the exact demographic that it’s aimed at, at least when it comes to music. Read more on Forbes.

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New YouTube Music Service Might Finally Launch

It looks like YouTube will finally launch it's long-awaited paid music service in late October, but it also looks to be  a little different than what we expected.

While YouTube's Music Key has been in beta testing for about 6 months, the rumors are that the service will now be called YouTube Red and it will consist of 2 main features:

1. The elimination of ads on all videos.

2. Access to Google's Play Music Unlimited catalog.

This all comes at a price of $9.99 per month. It's unclear whether users who have purchased Music Key will still be able to pay their $7.99 price or if their cost will also be the higher $9.99.

Supposedly the new service will also provide offline access to music and videos as well as background play (so you can listen to a song while working on another app on your phone) and more.

There's no word yet on the royalty structure for artists, songwriters, labels and publishers.

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