YouTube Unveil Their Music Streaming Service Challenger

Google-owned YouTube have unveiled their paid subscription music streaming service, putting the world's biggest music streaming platform in a battle with the likes of Spotify, Rdio and Pandora. 

Anecdotally the internet's main source of music discovery, new platform YouTube Music Key, to be rolled out this week, will give users the option to opt-in to higher quality audio and to remove the platform's ads in exchange for a monthly fee of $8US, which is an initial launch price. Available on desktop, mobile and tablet, there will also be a free ad-funded version of the Music Key platform.

The service has long been expected and caused controversy earlier this year when they appeared to strong-arm the independent sector in contract negotiations. With agreements with the three major labels, it's understood YouTube have deals with "hundreds" of independent companies. 

In confirming the service (at time of writing the official page is down) Google have indicated that Music Key will undergo a six month trial period. 

YouTube have, in the past 18 months, worked to implement revenue streams on their service to pay royalties to rights holders. Music Key will have both audio and video streams, with full albums for some artists on the major labels. 

Music Partnerships Director Christophe Muller told The New York Times, "We want to give fans more ways to enjoy music on YouTube, but also give artists more opportunities to connect with fans and earn more revenues."

It is understood that Google will use the beta period to not only refine the platform, but also shape a definition of what music is on YouTube. For example, they will be looking for feedback on how to implement things like viral videos with backing music (such as Harlem Shake parodies) and cover versions. 

Streaming is emerging as a key revenue stream for music rights holders and artists as traditional sales decline, although it's widely agreed that the sector still need major development.

According to global recording industry body IFPI last year streaming revenue rose 51 percent globally, but overall revenue dropped 3.9 percent. In Australia revenue from streaming services doubled to $20.9 million in 2013 and now makes up 5.9 percent of the market.