REVENUE STREAMS
Launching in Thailand with ‘affordable’ plans
YouTube jumps into subscription-based music services, heating up a space whose key players include Joox and Spotify.
YouTube has jumped into the subscription-based music service, which could heat up an industry whose key players include Joox and Spotify.
The streaming giant launched the YouTube Music app yesterday in Thailand, along with several other countries in Asean. The service is provided in 71 countries worldwide.
The app is free with advertising, but there is also a premium version with a paid membership so users can play songs and music videos without ads. The songs can be played in the background while users run other apps on their phones.
YouTube Music Premium, which also offers downloads for offline use, comes with a subscription fee of 129 baht per month per person and 199 baht for a family plan that lets a user share the YouTube paid membership with up to five other family members aged 13 and up.
“YouTube’s service is growing rapidly in Thailand, particularly entertainment — the largest category that involves music and TV,” said Mukpim Anantachai, head of YouTube partnerships in Thailand.
The growth stems from the rise of internet users in Thailand — from 28 million to 47 million between 2014 and 2018, she said. The 47 million users account for 70% of the population.
Ms Mukpim said the availability of low-cost smartphones and better telecom infrastructure have made YouTube a part of daily life among Thais. Nine out of 10 online users in Thailand use YouTube each month.
The company also launched YouTube Premium, in which a user pays 159 baht a month to access content without advertising and can download videos for offline use. A family package costs 239 baht a month.
A one-month free trial will be offered before subscribers pay membership fees.
Ms Mukpim said each country has its own price fees for the service. She called Thailand’s fees “affordable”.
Kittipetch Pingkarawat, YouTube’s music partnerships manager in Southeast Asia, said artificial intelligence technology will provide smart searches and recommendations for users.
YouTube is working with music labels on the app, including rights clearance for songs.
“Revenue sharing with music creators in YouTube Music Premium is different from normal YouTube, but the details cannot be disclosed,” Mr Kittipetch said.
According to the International Federation of the Phonographic Industry, income from the global music streaming market in 2017 grew to 41.1% of the music industry’s total income of US$17.3 billion.