As you may know, Youtube has added commercials to the videos on their site. Sometimes you will have to watch over 20 seconds of commercial ads before you can watch the video you want to.
Now Youtube is about to launch a new ad-free music subscription service where you can pay to watch ad-free videos. In the beginning the service will only be available to selected few. The new service will start up in a beta version only accessible by the ones who are heavy watchers of the videos on Youtube.
Youtube is the largest music website and now they have been making a deal with major labels Sony, Warner and Universal Music, along with many independents.
The paid version of Youtube will, once it´s launched, profit $200-300 million, says McQuivey, an analyst with Forrester Research, to USAtoday.com. Youtube is owned by Google, and it´s, as McQuivey says, an obvious thing to do. He also says: “Google is sitting on an asset. It has millions of customers coming every day to listen to music. To not make a play to deepen the relationship would be foolhardy.”
Once the new service is available to all users it will cost $9.99 monthly.
USAtoday.com has been offered to try a brief demo of the service, and they say it´s clearly a Spotify-like service with video.