In a statement made yesterday, YouTube has announced a multi-year deal with music label, Universal Music Group in an effort to expand its reach in the coming years.
The deal is the second such agreement that YouTube has announced in recent times. The company announced a similar deal with Warner Music Group in May of this year.
According to Bloomberg however, the deal with Universal Music Group is a direct consequence of YouTube’s newest initiative. The company is set to launch its own paid music service which is likely to go live in March, its agreement with Universal only strengthens its own services.
Speaking of the services to be offered, YouTube’s CEO, Susan Wojcicki said, “We’re thrilled to strengthen our partnership with Universal Music Group”. She added, “This agreement means we can drive more value to the industry, break and support more artists and deliver an incredible music experience to fans around the world”.
The partnership is certain to be lucrative for both parties concerned since Universal Music Group is an internationally reputed music firm which counts artists such as Jay Z and Taylor Swift among its star clients.
A spokeswoman for YouTube declined to comment on such plans. However, sources state that the new investment is likely to be a worthy competitor for existing music streaming businesses like Spotify and Apple Music.
In the past, Alphabet, YouTube’s parent company, had made clear its ambition to improve the working of the site.
The company has shelled out a great deal of money to acquire content and has openly made YouTube’s subscription business a high priority.
While the company offers paid YouTube television subscriptions it is still lagging behind in the sector. Additionally, although it has experimented with music plans in the past, it has been unable to capitulate on the opportunity.