YouTube to finally launch paid subscription, but could block some popular artists

Depend on YouTube to get your daily fix of music from your favourite artist? Well you may soon be in for a rude shock. The Google-owned video service is planning to block several independent record labels who’ve refused to sign up to the licensing terms of the company’s new subscription service, according to a report by Financial Times .

The report further adds that record labels that account to 95 percent of the music industry have signed up to the new terms, as revealed to the news site by Robert Kyncl, YouTube’s head of content and business operations.  Only the remaining 10 percent, who’ve asked European regulators to check if Google is taking advantage of its position, have now been blocked from using the platform. YouTube has partnered with “hundreds of major and independent” music labels for the new service, the company said in a statement, confirming long-time rumours that the popular online video website will offer a paid music service.

With the new paid service, YouTube will allow users paying a monthly fee to watch videos or listen to music without any advertisements even when not connected to the Internet. This premium YouTube service is likely to launch at the end of the summer. The new premium feature set will also allow users to listen to an artist’s entire album and not just a particular song like the current service.

According to RollingStone , Alison Wenham, chief executive of the Worldwide Independent Network, has called YouTube’s tactics ‘bullying’. The Worldwide Independent Network reps have also told reporters that YouTube’s ‘proposed contracts to independent record labels are non-negotiable, with less favorable terms than those of competitors such as Spotify and Rdio’, adds the report. On the other hand, YouTube reps believe that the indie-label network is simply making these accusations as a negotiating tactic.

Now, amid criticism, the company’s decision to move ahead without some of the best-known artists only shows how determined it is to enter the fast-growing market for music subscription services.  Music streaming is becoming a fierce battle ground and with the new service, it is now ready to take on competitors like Spotify, Beats Music and others.  Moreover, Google is also looking to stay ahead in the game considering its arch-rival Apple now owns Beats Music , while Amazon has also recently launched the Prime streaming service .