Can Google Surpass Spotify, Beats Music With YouTube Music Service?
Google (NASDAQ: GOOG) hopes to lead the streaming music industry with a new service from YouTube.
The unnamed service has been rumored for several months, even after Google Play Music All Access was announced.
For those who have yet to discover Google Play Music All Access, it is the company's first answer to Spotify. It involves audio (not video) tracks, and provides paying users with an ad-free experience.
This week Google expanded the offer, which now applies to all newly purchased Chromebooks.
Since Google is more or less the new kid on the block, consumers might expect the company to offer something extra over Spotify. Thus far, the company has chosen to employ a follow-the-leader strategy. Google Play Music All Access is, in its purest form, another Spotify -- just as Google's last music service was another iTunes.
According to the Financial Times, Google will launch its YouTube-specific music service in the not-too-distant future.
The idea is simple: instead of being forced to view a 15-second ad before a three-minute music video can begin, users will be able to pay a monthly fee and watch all the videos they want without ads.
Bands do not typically produce music videos for every song on the albums they release, but Google is expected to give paid users access to entire catalogs of music. This could simply mean that users will be able to listen to an entire CD's worth of music even if videos do not exist for each track. But it may also inspire musicians and record labels to make more videos, knowing that they could get more attention from YouTube's paid users as a result.
In addition to its competition with Spotify, Google will reportedly use its YouTube-based offering to compete against the upcoming streaming service from Beats Audio.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.