YouTube will begin offering more announcements to heavy music listeners hoping to annoy them to become paid subscribers to the company's next new music service, according to Lyor Cohen, YouTube's global music director, in an interview on SXSW. , via Bloomberg.
While it will undoubtedly be frustrating for users who treat the site as a free streaming alternative, it is a movement that makes a lot of sense for YouTube. After all, Spotify has been using more or less the same business model to convert free users to its premium levels paid for years, and currently leads the broadcast industry in general subscribers. "There are a lot more people in our funnel that we can frustrate and seduce to become subscribers," says Cohen.
The strategy of pushing more ads to users is a victory for YouTube, no matter how you look at it. Either more users bother to subscribe or YouTube earns even more money with the increase in advertising revenue. And there's the additional advantage that attracting customers to a music service could help bridge the bridges between YouTube and the music industry, which is often frustrated by the fact that YouTube hosts millions of videos that infringe the rights of music. musical author. not the artists and the labels.
The new YouTube service is expected to launch sometime this year and combine aspects of existing YouTube Red and Google Play Music services in one package.