YouTube to launch paid music service
Published on Jun 18, 2014 6:37 AM
SAN FRANCISCO (REUTERS) - Google's YouTube said on Tuesday that it plans to launch a paid streaming music service, amid criticism that its existing, free video website might block the music videos of labels that do not agree to its terms.
YouTube has partnered with "hundreds of major and independent" music labels for the new service, the company said in a statement, confirming long-running rumours that the world's most popular online video website will offer a paid music service.
The news comes as some music trade groups have criticised YouTube's plans to potentially block the content of certain labels from appearing on YouTube's free, ad-supported Website unless they sign deals to participate in the new, subscription streaming music service. The deals that YouTube is offering are on "highly unfavourable, and non-negotiable terms", according to a news release issued by the Worldwide Independent Music Industry Network last month.
YouTube declined to comment on the terms of the deals, but said in a statement that the new service would provide new revenue for the music industry. "We're adding subscription-based features for music on YouTube with this in mind - to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year," YouTube said in a statement.
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