YouTube Music has hit a major milestone by amassing 50 million subscribers to its paid services. The 50 million figure includes people paying for YouTube Music, customers for broader YouTube Premium services, which allows users to enjoy videos ad-free. This number also includes the subscribers who are still in a trial period.
The Video streaming giant has not disclosed the amount of revenue it is making from these subscribers or the average price subscribers pay for its services, Bloomberg reported.
Google tried launching music subscription service with mixed success in the last decade but with its current subscription scheme, it has figured out on how persuade its customers to pay for music. YouTube is the fastest-growing paid music service in the world, according to Midia Research, and now accounts for about 8% of the world’s subscribers. Spotify continues to be the market leader with a wide margin.
It’s a welcome development for YouTube’s parent company, Alphabet Inc. YouTube’s free advertising-supported business already makes it one of the largest media businesses in the world. YouTube reported advertising sales of $7 billion in the most recent quarter, marking a staggring growth of 84% from last year.
Mark Mulligan from Midia Research said, YouTube Music was “becoming to Gen Z what Spotify was to millennials half a decade ago”,
“Google’s YouTube Music has been the standout story of the music subscriber market . . . resonating both in many emerging markets and with younger audiences across the globe,” he added.