Google's YouTube to Launch New Music Service on Tuesday

Alphabet Inc.’s (GOOGL) YouTube is set to have another go at taking on Spotify Technology S.A. (SPOT) and Apple Inc. (AAPL) in the race for music streaming supremacy.

The video-sharing website announced that it will relaunch its music subscription service on Tuesday, offering users a free-to-use basic package or a premium ad-free model costing $9.99 per month. The YouTube Music mobile app and desktop player will first be launched in the U.S., South Korea, Mexico, Australia and New Zealand, followed by many other countries over the next few weeks, and is set to eventually replace Google Play Music.

In a statement, YouTube said its new offering will include thousands of playlists, millions of songs, albums and artist radio, as well as music videos. The company added that the service will be more personalized than ever, pulling account history from YouTube to ensure that users hear the songs they like, depending on the time and day of the week.

Google’s existing subscription offering YouTube Red, meanwhile, has been billed as an extension of the new music app. The service, which bundles music with original shows, has been renamed YouTube Premium and will now cost $12 per month, a $2 jump on its current price, to reflect the addition of YouTube Music to its ranks, on top of ad-free, background and offline access to YouTube and Original shows including Cobra Kai, Step Up: High Water and Youth & Consequences.

In an interview, reported on by CNET, Lyor Cohen, YouTube’s head of music, said that the company plans to “spend an enormous amount on marketing" to promote the new music service, but will not seek to strike exclusives for album releases.

Cohen also voiced his confidence that YouTube, the number one global streaming service for music, can hold its own against Spotify and Apple Music, the two most popular subscription-based companies. “YouTube in general is where most music is consumed,” he said. “If there was ever a company that could build a successful subscription business, it would be YouTube.” (See also: Can Apple, Amazon, Pandora, Compete With Spotify?)

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