Google is set to launch a new ad-free streaming music service to compete with Spotify, Beats and Pandora and they're getting serious about it. Google will use the Youtube brand to create the service, which will charge users a subscription fee. Google has reportedly reached deals with the three major labels, Warner, Universal and Sony but a collection of indie labels are still holding out.
Youtube's plan? Block their videos until they comply! According to the Financial Times, Google is strong-arming the labels by threatening to block artists' access to Youtube. Youtube essentially is offering no comment but the Verge contacted some people in the know and reported:
A source familiar with the situation has confirmed to The Verge that most of the details in the FT story were accurate. YouTube does not want to launch a paid service and then be forced to show some videos in ad-supported mode, or offer users the ability to take videos offline, but not be able to offer that for big names like Adele or Jack White. It is going to begin blocking artists whose labels have not signed on to its new licensing terms in the countries where those deals apply starting within just a few days, although the paid service is not expected to roll out that soon.
It's unknown how metal labels would be affected by this, as many have distribution deals through the majors, but I have to say, it would be in their best interest to hop on board. Previously, indie labels complained of low rates from Youtube so perhaps there is wiggle room on both sides.
