After a series of pivots, rebrands, upgraded offerings and expanded plans, YouTube Premium and Music has passed the magic mark of 100 million subscribers, counting users in tests, the company announced on Thursday (February 1).
That's up from 80 million Premium and Music subscribers worldwide (including trials), reported in November 2022, and a jump from 50 million users at the end of 2021.
The milestone is cause for great celebration at the company, he notes Leo Cohenglobal head of music at YouTube, in one I open a letter to the industry issued today (February 1). “This growth of 20 million members in just over a year underscores the power of the twin revenue engines of advertising and subscriptions,” Cohen writes.
The Alphabet-owned business unveiled its subscription offering, YouTube Music, in October 2015 and launched its dedicated app the following month.
The streaming landscape back then was full of naysayers. “Many doubted that a subscription model could thrive on YouTube,” notes Cohen. “They said the market was saturated and our platform was too different. Today – 100 million subscribers later – our uniqueness is exactly what drives our success and why I still see so much room for growth.”
Later in June 2018, YouTube announced the launch of YouTube Premium, formerly known as YouTube Red. Since then, notes Cohen, the global expansion of the Premium service has grown and is “now thriving in more than 100 countries and territories” with “more on the horizon in 2024.”
Crossing the 100 million mark, “we are happy and humbled”, comments Adam Smithvice president of product management at YouTube, in a separate statement.
Along the way, “we've learned a lot, made some pivots (and even rebranded), expanded our offerings and plans, and made YouTube Music and Premium available in more than 100 countries and territories,” adds Smith.
In a mix of streaming heavyweights, Spotify, the leading music platform on the market, has the edge. The Sweden-based company entered the market early in 2008 and had 226 million premium subscribers worldwide in Q3 2023.
Although Apple rarely shares updates on subscriber numbers, in June 2022, JP Morgan estimated Apple Music could reach 110 million subscribers by 2025. The last time the company reported subscriber numbers for Apple Music was in 2019, when it reported 60 million paid users.
As YouTube hangs on the decorations, captains of industry are lining up to thank their tech partner — including a former YouTuber who now heads a major company.
“Having been on YouTube when we conceived the subscription service, 100 million customers felt like a distant possibility,” he says Robert Kyncl, who was Chief Operating Officer at YT before joining Warner Music Group as CEO. “Today, it is yet another driver on a journey of extraordinary growth. The fact that YouTube continues to go from strength to strength isn't just good for them, it's healthy for the entire music ecosystem.”
Lucian Grainge, Chairman and CEO of Universal Music Group, says the team led by Cohen and YouTube CEO Neil Mohan deserves credit for “continuing to grow and drive innovation while making significant contributions to the global music ecosystem. Our partnership proves that if you start from a foundation of respect for artists and songwriters, there are limitless opportunities to build thriving businesses that benefit artists and fans.”
He adds Helen Smith, executive chairman of pan-European independent music trade body IMPALA: “YouTube occupies a unique position in the music ecosystem, is a valuable member of IMPALA's Friends program and a great partner in the 100 Artists to Watch program.” He continues, “We look forward to continuing to work together across the European market, where there is so much potential for digital services that see diversity as an asset.”
According to Cohen, YT's business contributed $6 billion last year.
“The music industry is at a critical juncture,” he writes. “Together, we can leverage technological innovation to create unprecedented value for artists and fans, building on our momentum that contributed $6 billion to the music industry in 12 months.”
This future, where the music industry is “thriving”, he insists, would see both sides harnessing AI to enhance creative imagination, seamlessly bridging short and long-form content for maximum artist exposure and more.
Read Cohen's letter of thanks here.
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