The Numbers Add Up For YouTube’s Music Key

For the better part of a year we’ve been hearing rumors about YouTube’s “soon to be launched” subscription music service, but details were always sorely lacking - until now. Android Police seems to not only have uncovered some details about the service, reportedly to be called “Music Key,” but even has a few screen graphics as well.

If you’re not familiar with the situation already, YouTube (which is owned by Google) is the leading online platform for music discovery, as well as the preferred music service for those 18 and younger. In fact, 38.4% of all its video views come from music, and 10 of YouTube’s top 20 channels are dedicated to music, according to the YouTube analytics firm Tubular. Google has wanted to monetize these music video views even more than it has already with advertising by spinning off a separate music-only subscription service, and that’s what Music Key is.

Reportedly the service will be an audio-only platform that will cost $9.99 per month, but for that the commercials are eliminated, and the user will have the new-found ability to listen to songs offline. A free 30 day trial is said to be offered, at least during the product launch.

Google does face a number of challenges with Music Key however. First is the cannibalization of its own Play All Access music streaming service. Word is that the company will rebrand it as Google Play Music Key, but it still seems like there’ll be some confusion there, like which service do you subscribe to? Is there a difference between the two? Does one have advantages over the other? Does a subscription cover both? The problem here is that the company should be trying to draw a distinction between itself and other competing services, not between its own properties. It seems like a small issue now, but it just might be enough to make a potential customer throw her hands in the air in a fit of indecision and subscribe to Spotify instead. Read more on Forbes.

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The Songza Feature That Google Couldn’t Resist

In a deal rumored for weeks, Google has finally acquired the music streaming service Songza for a reported $15 million. There appears to be no immediate plans to change the service, according to a post on the Songza site, except to “make it faster, smarter, and even more fun to use.”

But what’s the real reason behind the acquisition? Certainly Google has the cash to buy either Pandora or Spotify, market leaders in the radio-like non-interactive and on-demand categories of the music streaming market. The fact is that even though both of those services have the largest user bases in the sector, they actually bring little value in terms of what Google needs. The company’s Music Play All Access service doesn’t have the kind of subscriber numbers it wants, but that could be just a matter of time, considering that YouTube (which it owns) is the number one online source for music discovery and access already. And the company already has a large catalog of licensed songs, so a purchase with that in mind is redundant.

What Songza specializes in is music curation, a feature that Beats Music used as its primary lure in its purchase by Apple. While Google may be the king of the algorithm, it’s been proven time and again that computer generated playlists can’t come close to the musical taste of human. It’s been reported that Pandora’s Music Genome Project, which many contend is the heart of the service, is already 10 years in the making. Google has the resources to bump that timeline up, but the way the streaming market is heading, time is of the essence. Google needs a similar feature right now. Read more on Forbes.

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Who Will Be The Last Streaming Service Standing?

Reports last week that Google is in talks to acquire Songza, a six year old music curation and streaming service, show that an industry-wide rollup in streaming services is now in real possibility. This is on the heels of Apple snapping up Beats Music recently, and may be a sign of things to come in the sector.

Although Songza is a relatively minor player in the space with only 5.5 million active users, it does show that the major players are interested in acquiring infrastructure or feature parts they don’t currently have in order to quickly compete with the other major players. Songza is known for its music curation, which could be immediately integrated into Google Play Music All Access (perhaps the world’s worst brand name) in order to compete with an anticipated new Apple streaming service. Beats Music’s main feature is also curation, and having Apple jump out in front with that feature would require Google Play to catch up even more than it has to already.

It’s still unclear whether curation is the killer feature that music consumers want though. A trusted source has always been the key to popularizing new music, from radio DJs to MTV to music critics, but as of yet no single curation source has risen above the rest online as the de facto standard. In fact, it can be speculated that curation doesn’t actually matter much at all, given the fact that Beats Music subscriber numbers are so low at between 110,000 to 250,000, depending on what you read. It was the feature that the service hung its hat on, yet it wasn’t something that consumers flocked to when it became available.

That said, there are indications that we’re beginning to see what has been predicted as a slow rollup of smaller streaming players that will eventually leave only the major players of Amazon, Google and Apple, and maybe one or two of the smaller ones, standing. Read more on Forbes.

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The Real Reason Behind YouTube’s New Music Streaming Service

By now you’ve heard the reports that YouTube is preparing its own music streaming service, and although the company hasn’t officially confirmed it, accounts of numerous recent private showings of the service to select partners have appeared. On the surface you can look at the prospect of a YouTube music streaming service and ask why it’s necessary, since parent company Google already has one of its own in Google Play Music All Access (this name has to be at least four syllables too long). Then you might wonder what YouTube has to offer that’s not being offered by numerous other services already. I’m glad you asked.

Let me say up front that I have very little insider information on the subject and haven’t seen the service myself, but you can figure a number of things out by just looking at the current landscape of the streaming music business and Google and YouTube’s place in it already.

First of all is that terribly long name for Google’s existing music service (Google Play Music All Access). I don’t care how big a company Google is, that’s not a brand that a user can get behind. Imagine a kid trying to explain this cool new service she just found and then tries to spit out that tongue twister of a brand name. About the only thing you can count on her getting right is “Google.” 

YouTube, on the other hand, is a brand that everyone knows, and most kids already use  it to discover their music. It has a built-in hard-core audience that contains precisely the prime demographic for consuming music (14 to 24 years old), plus another billion (with a “b”) or so active users. Adding a streaming music function becomes only just a new YouTube feature, not a new service. Read more on Forbes.

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