Thursday, October 24, 2013

YouTube: Dire Straights Or Huge Opportunity?



We know that YouTube has become the channel of choice for many kids to listen and watch their music. After all why have a one dimensional experience when you and get two for free. The video archive continues to grow and some would suggest that it’s easier to find some obscure footage and music via YouTube than via the pure music routes.
To think it all started with MTV or to quote Dire Straights' 'Money For Nothing.'.
Now that ain't workin' that's the way you do it
You play the guitar on the MTV
That ain't workin' that's the way you do it
Money for nothin' and your chicks for free
Billboard now report that they believe that YouTube is planning to introduce a subscription music service in weeks, which if correct could blow many traditional players off the scene. The assumption is that they will be offering a free service plus a premium one and Billboard believe that the premium service will also be tied to unlimited access to the full catalogue and the ability to cache for offline listening and removal of ads.
Video will clearly set YouTube apart from not only Google’s own Play service but also Spotify, Pandora, Apple’s iTunes Radio and others.
YouTube has committed to trailing offline video, giving creators the option of offering offline viewing to their videos. Google Play Music All Access licences also appears to give them the ability to launch the service obviating the need to go back to the table. Now the Premium service will generate both ad and subscription revenues and of course may feature high on many search requests.
We all think that we understand the landscape and that things don’t change. However, this is a classic sea change opportunity that if introduced as described and price attractively could change the music market. It starts from a place others aren’t at and can’t quickly catch up with and feeds on a growing two dimensional consumer trend. Finally, it also is fed by consumers own videos and bootlegs which up to now have been seen as interesting but…

No comments: