Music Biz: YouTube Increasing Ads Before Music Videos to Encourage Paid Subscriptions
If you use YouTube like a streaming service and frequently listen to music on the platform, you might start noticing more ads soon.
As part of an effort to direct people to their forthcoming paid music subscription service, the company has a plan to increase ads and “frustrate” users into signing up for the service and getting rid of advertisements.
In an interview at SXSW last week, Bloomberg reports that YouTube’s global head of music Lyor Cohen said, “You’re not going to be happy after you are jamming ‘Stairway to Heaven’ and you get an ad right after that.”
YouTube has been criticized for their current ad-supported business model, which is seen by many as detrimental to the music industry because of low payouts. Cohen says they have a plan to change that and become “good partners” with the industry, however. YouTube is building up a paid service with reduced ads as well as exclusive playlists, videos, and other content.
