Google Inc. (NASDAQ:GOOGL) Introduces Paid Music Products for YouTube

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By Ross Schwartz on November 14, 2014 Company

Ever since Google Inc. (NASDAQ:GOOGL) acquired YouTube back in 2006, investors have been pitching questions as to how the deal would make them more money, or whether YouTube will make money for Google Inc (NASDAQ:GOOGL) at all. The answer to that was simple. YouTube is the largest video website in the world, beating competition by a long way. As of August, YouTube had 159 million visitors viewing videos on the website. YouTube will be accumulating more revenue since now it has introduced paid music service.

YouTube generates revenue from ads and video rental based sales, but it isn’t enough to put the video giant on Google Inc. (NASDAQ:GOOGL)’s priority list, as far as earnings are concerned. Regular YouTube users have complained about the constant popping of ads on the website; people have demanded an uninterrupted music session that can be played online and offline, in the background and with another app. To cater to such customers, Google Inc. (NASDAQ:GOOGL) introduced YouTube Music Key beta, which is a monthly subscription service that’ll offer nonstop videos and music, with no interruption whatsoever for a discounted rate of 7.99 dollars per month.

The app will be free for the first six months. If the app strikes the fancy of the customers, Google Inc. (NASDAQ:GOOGL) will release it globally. The subscription will also include a registration to Google Inc. (NASDAQ:GOOGL) Play with over 30 million songs to choose from. In the coming days, the app will also offer original music videos to its customers. The product is still in beta; once Google Inc. (NASDAQ:GOOGL) is sure that this app will work its way into the daily lives of all the video and music lovers; it will be released all around the world.

With this App, YouTube revenue will shoot up. That would turn out quite significant for Google Inc. (NASDAQ:GOOGL) itself because Google Inc. (NASDAQ:GOOGL) will be the one benefitting in the longer run. Also, the app’s success would keep a lot of mouths silent which were rooting against YouTube from the start.

YouTube will become a major player of Google Inc (NASDAQ:GOOGL)’s ever-expanding portfolio. Google Inc. (NASDAQ:GOOGL) has been emphasizing on the market smartphones and tablets have created for the company. The tech industry is rising rapidly and Google Inc. (NASDAQ:GOOGL) is aware of that. Little devices like phablets and smartphones will eventually eclipse desktop computers etc. Google Inc. (NASDAQ:GOOGL) is already aware of the transition process; perhaps it anticipated the revolution earlier than all of us. That is the reason shareholders have been trying to persuade Google Inc. (NASDAQ:GOOGL) for far too long about the fact that it emphasizes on its smartphone market and other segments which are relatively strong.

There’s absolutely no reason why this app will fail; YouTube has followers all around the world, in fact internet without YouTube has become integral for the web. Following the success of YouTube Music Key, YouTube will become gigantic in stature and reputation; as for Google, it’s well known for its smooth sailing.