YouTube is on the verge of launching two separate subscription-based services before the end of 2015. One of the services, Music Key, has been in beta services since November 2014 and allows its users to stream ad-free music and music videos for a starting rate of $8 monthly. Users subscribed to Music Key will gain access to Google Play Music, a competitor with Spotify for streaming services.
The second service is currently unnamed but it is confirmed to target YouTube’s premium content creators. This service comes with a paywall, but will also allow users to save videos offline and watch videos ad-free.
This new strategy will allow the company to generate money in two different ways. This concept is similar to the way cable companies run their business with different service packages.
There is some speculation that the launch of Music Key is leverage for the upcoming negotiations about deal renewals seeing as some of the major labels signed with YouTube will expire in 2016. Though some of the labels and industry players won’t always agree with new practices, they know to cooperate because YouTube is still the top dog in the music streaming business.