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A music streaming service is a type of online streaming media service that focuses primarily on music , and sometimes other forms of digital audio content such as podcasts . These services are usually subscription-based services allowing users to stream digital copyright restricted songs on-demand from a centralized library provided by the service. Some services may offer free tiers with limitations, such as advertising and limits on use. They typically incorporate a recommender system to help users discover other songs they may enjoy based on their listening history and other factors, as well as the ability to create and share public playlists with other users. It may also include customized radio or social media platforms .

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52-452: YouTube Music is a music streaming service developed by the American video platform YouTube , a subsidiary of Google . The service is designed with a user interface that allows users to explore songs and music videos on YouTube based on genres, playlists, and recommendations. In April 2023, the service expanded its offerings to include support for podcasts. YouTube Music also features

104-661: A viral dance meme —was boosted to number-one on the Billboard Hot 100 chart in February 2013 after U.S. YouTube views for music content were added to its methodology. After Spotify's launch, new competing services began to emerge in the North American market, including Beats Music —which was backed by headphone maker Beats Electronics , Microsoft Groove Music Pass (formerly Xbox Music), Amazon Music Unlimited , and Google Play Music All-Access (a branch of

156-491: A cent per steam, while streaming services like Spotify tripled in value with no increase in payouts to artists. This is one of the main limitations that comes with music streaming services. Digital distribution of music began to achieve prominence in the late 1990s and early 2000s; MP3.com and PeopleSound were early forerunners to later services, offering the ability for musicians (including, especially, independent musicians ) to upload and distribute their songs online in

208-567: A competitor. The pre-order bonus may be as simple as a discount on the item's purchase price or other related merchandise, another marketing strategy, or it may be an actual item or set of items. The items may be related merchandise or exclusive items available only through the pre-order program. Until around 2000, the primary distribution method for video games were through physical media such as CD-ROMs , DVDs , or game cartridges , including packaging and instruction manuals. Preparing enough copies for vendors to purchase and sell to consumers on

260-424: A copy within a day or two of release, negating the primary drivers to pre-order. Furthermore, digital distribution eliminated the need for retail versions started to take off, as there is effectively no fixed volume of digital copies. Then, publishers and retailers started to turn to other methods to encourage pre-orders. Publishers created limited edition packages that would include additional physical items with

312-560: A custom radio station, selecting up to 30 artists with an option to hear only their songs or from comparable musicians. In April 2023, podcasts were added to the service, initially for users in the US only with a worldwide rollout planned at later date. Google Podcasts was shut down worldwide in June 2024 with YouTube Music replacing it. The free tier plays songs in its music video version where applicable. The premium tier plays official tracks of

364-591: A digital music store. In 2019, Beatport , an online music store primarily targeting DJs and electronic music , announced music streaming services known as Beatport Cloud and Beatport Link. The latter is designed to integrate directly with DJ software such as Serato , Rekordbox , Traktor , and its first-party web application Beatport DJ (which launched in 2021); the service targets professional DJs shifting to streaming-based models for their music libraries, as well as amateur DJs. By 2013, on-demand music streaming had begun to displace online music stores as

416-423: A legal alternative to file sharing platforms such as Napster and Kazaa , the service allowed users to stream songs on-demand using peer-to-peer technology , and would be offered in subscription-based and ad-supported tiers. Ek stated that he wanted to "create a service that was better than piracy and at the same time compensates the music industry." In 2006, a French music streaming website known as Blogmusiq

468-449: A minimum of 1,000 listens every year to receive royalties" starting early 2024. Additionally, some have expressed concern about the focus of streaming metrics as the primary source of monetary compensation for musicians and songwriters as streaming fraud gains traction. When music services already face critiques for taking large cuts from artists, some say their business models help record labels profit even more. Streaming services take

520-653: A new version of the YouTube Music service, including a web-based desktop player and redesigned mobile app, more dynamic recommendations based on various factors, and the use of Google artificial intelligence technology to search songs based on lyrics and descriptions. In addition, YouTube Music became a separate subscription service (positioned as a more direct competitor to Apple Music and Spotify ), offering ad-free and background/audio-only streaming, and downloading for offline playback, for music content on YouTube. The service's benefits continued to be available as part of

572-461: A partnership with Rhapsody owner RealNetworks to form the joint venture Rhapsody America, and transition Urge subscribers to Rhapsody. Yahoo Music Unlimited was discontinued in July 2008, and Yahoo also directed users to Rhapsody. In the 2010s, online streaming gradually had begun to displace radio airplay as a significant factor in the commercial success of music. Spotify officially launched in

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624-400: A premium tier that provides several benefits to subscribers. These include ad-free playback, the ability to play audio in the background, and the option to download songs for offline listening. These benefits are also available to subscribers of YouTube Premium . On December 1, 2020, YouTube Music replaced Google Play Music as Google's primary brand for music streaming. The YouTube Music app

676-593: A service also offering downloads and a music locker). Beats Electronics was later acquired by Apple Inc. , which discontinued Beats Music in 2015 and replaced it with a new Apple Music service. Tidal , a streaming service oriented towards high-fidelity audio, also emerged in 2015, with backing from rapper Jay-Z , and a focus on exclusive content. In October 2015, after initially offering "Music Key"—a subscription bundling Play Music All Access with ad-free viewing of music content on YouTube, Google launched YouTube Red — which extended ad-free access to all videos on

728-442: A specific shopping period, like the holiday season, to commit to a purchase. Having paid for part or all of the purchase when placing the order, the consumers will usually complete the transaction shortly after the product's release, often on its first day in stores. Individual stores or retail chains may also offer bonuses for a popularly anticipated product to ensure that the customer chooses to buy at that location, rather than from

780-412: A subscription music streaming service known as "Urge To Go". Urge was briefly integrated with Windows Media Player as a competitor to Apple 's iTunes and iTunes Store , but was discontinued in 2007 amid cannibalization by Microsoft's Zune platform (which was positioned as a competitor to iPod , and used its own separate DRM and music store that was incompatible with Urge). Viacom then entered into

832-432: A waste and do not believe that any kind of incentive is truly worth a marked up price of sometimes over twice the original price for certain digital in-game pre-order bonuses, which may be released as free downloadable content sometime later after the game's original release. Others have pointed out that with the pre-ordering process, publishers can effectively assure a sale of the game to those consumers and so can release

884-405: Is a marketing tactic in which a retailer or manufacturer / publisher of a product (usually a book or video game ) encourages buyers to reserve a copy of the product at the store prior to its release. Reasons vary, but typically, publishers wish to ensure strong initial sales for a product, and the offered incentive is used to induce shoppers who might otherwise wait for positive reviews or

936-512: Is available in most of the Americas, Europe and Oceania, as well as parts of Africa and Asia, with a total availability in 119 markets. Following the Russian invasion of Ukraine , Google indefinitely suspended all of its all payment and subscription-based services in the country, including YouTube Music. Music streaming service Streaming services saw a significant pace of growth during

988-451: Is only available to premium tier subscribers. In July 2024, YouTube rolled out an additional high quality option, 256 kbit/s OPUS, to premium tier subscribers. YouTube Music Premium and YouTube Premium plans are available in individual and family variants. A family plan allows up to six family members from the same household to access plan features. Eligible students can obtain a discount on an individual plan. As of March 2024, YouTube Music

1040-609: Is the case for smaller artists, who take up a large portion of the music industry. Without an extensive fan base, these artists aren't able to make a sufficient amount of money. To increase the diversity and value of their services, music streaming services have sometimes produced or acquired other forms of music-related content besides songs, including music documentaries and concert presentations. Spotify had begun to increasingly make investments into podcasts , buoyed by acquisitions such as sports publication The Ringer and exclusive rights to The Joe Rogan Experience . In

1092-558: The American Music Awards . YouTube Music became available on Google Assistant smart speakers (including Google Nest smart speakers) on April 18, 2019, with feature-limited ad-supported playback available for non-subscribers in only a limited number of countries. On July 8, 2024, YouTube Music was updated in Canada to prevent background play unless the users subscribe to YouTube Music or YouTube Premium, bringing it to

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1144-585: The GfK Entertainment charts in Germany also added streaming to its methodology; however, the metric is based on revenues generated from a song's availability on paid platforms only, thus excluding free ad-supported services. Pre-save A pre-order is an order placed for an item that has not yet been released. The idea for pre-orders came because people found it hard to get popular items in stores because of their popularity. Companies then had

1196-479: The MP3 format. In 1999, MP3.com offered a service known as Beam-It, allowing users to rip and upload music from CDs they owned into a personal library they could stream via their accounts. The service was then the subject of a lawsuit by Universal Music Group , which ultimately ruled that the service constituted the unauthorized distribution of their copyrighted sound recordings. The lawsuit proved detrimental to

1248-491: The album unless the user searches for the music video version. YouTube Music Premium and YouTube Premium subscribers can switch to an audio-only mode that can play in the background while the application is not in use. The free tier does not allow audio-only mode with background playback as it displays video advertisements. The free tier's audio quality supports up to 128 kbit/s, in AAC and OPUS audio formats, while 256 kbit/s AAC

1300-770: The dot-com bubble ; in 2005, the service evolved into Yahoo Music Unlimited , a subscription service that allowed songs to be streamed in DRM-protected Windows Media Audio (WMA), and purchased for an additional fee. The social networking service MySpace , and later the video sharing platform YouTube , also became prominent outlets for streaming music, with the latter becoming a particularly popular outlet for music videos and gradually displacing music television . In 2006, Swedish businessman Daniel Ek and Martin Lorentzon founded Spotify , which first launched in 2008; aiming to create

1352-631: The "big five" major labels. In 2003, Roxio acquired the assets associated with the former file sharing platform Napster . It was combined with assets from a second acquisition— PressPlay —to form a new service under the Napster brand, which included an online music store and subscription music streaming. Pandora Radio launched in 2005; the service initially allowed users to create and listen to internet radio stations based on categories such as genres, which could then be personalized by giving "thumbs up" and "thumbs down" ratings to songs and artists

1404-470: The 2010s, record charts began to increasingly include listener data from streaming platforms into their methodologies. In March 2012, Billboard launched a new "On-Demand Songs" chart, which was added to the formula of its flagship Hot 100 chart. In January 2013, On-Demand Songs was broadened into " Streaming Songs ", and YouTube views in the United States on videos containing music were added to

1456-436: The 2010s, overtaking digital downloading as the largest source of revenue in the United States music industry in 2015, and accounting for a majority since 2016. As a result of its ascendance, streaming services (along with streams of music-related content on video sharing platforms ), were incorporated into the methodologies of major record charts ; the " album-equivalent unit " was also developed as an alternative metric for

1508-526: The Hot 100 formula the following month. In 2014, the UK Singles Chart similarly changed its methodology to include streaming. To account for streaming and the decline of album purchases, album charts began to adopt a metric known as " album-equivalent units " (AEUs), which are based on purchases of the album, and how many times individual songs from the album have been purchased or streamed. In 2016,

1560-443: The United States in 2011, and Billboard began to increasingly include streams into the methodologies of its record charts . In 2012, Psy 's K-pop song " Gangnam Style " became a major international hit, driven primarily by the viral popularity of its music video; "Gangnam Style" would become the first YouTube video to reach one billion views . " Harlem Shake "—a song by trap producer Baauer that had become associated with

1612-462: The company, and it was subsequently acquired by UMG's parent company Vivendi Universal , and later sold to CNET (which shut down its music distribution platform). In December 2001, Rhapsody was launched by the startup Listen.com, becoming the first service to offer subscription-based streaming access to a library of music online. Initially limited to content from independent labels such as Naxos , it later reached agreements to stream music from

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1664-595: The consumption of albums, to account for digital music and streaming. It has also caused a cultural shift for consumers renting rather than buying music outright. Consumers moving away from traditional physical media towards streaming platforms attributed convenience, variety, and affordability as advantages. On the contrary, streaming has also been criticized by some artists for making them earn less from their music and artistry compared to physical formats, especially with pay-per-stream systems. Some critique that this system makes it so artists get paid as low as one-tenth of

1716-572: The core Google Mobile Services bundle distributed on new Android devices. In May 2020, an update was released to allow imports from Google Play Music, including purchased music, playlists, cloud libraries, and recommendations. The service still contains regressions over Google Play Music, including no online music store functionality (cannot purchase songs), and a YouTube Music Premium subscription being required to cast cloud library speakers to Google Nest smart speakers. Google stated that they planned to address this and other "gaps" in features between

1768-544: The discontinuation of Groove Music Pass, and directed its users to Spotify. In 2018, YouTube Red rebranded as YouTube Premium, and YouTube concurrently introduced a redesigned YouTube Music platform, along with a separate YouTube Music subscription at a lower price point. The YouTube Music platform can be used without a subscription, but carries video advertising, and does not support background playback on mobile devices. The YouTube Music service eventually replaced Google Play Music entirely in 2020, and Google no longer operates

1820-483: The early 2000s that the pre-ordering mechanism helped with forecasts, as they could order a reasonable number of copies of new games based on pre-order interest, which, in turn, helped publishers to determine how many physical units to create. Then, pre-orders were usually placed by providing the vendor with a small percentage of the game's cost to hold their reservation (such as $ 5 or $ 10 on a $ 50 game), with assurances they would receive their copy on release day after paying

1872-491: The estimated number of users of paid services was 667 million in 2023 . In 2019, streaming services accounted for the majority of music revenue globally for the first time. Music streaming services have faced criticism over the amount of royalties they distribute, including accusations that they do not fairly compensate musicians and songwriters. In 2013, Spotify stated that it paid artists an average of $ 0.007 per stream. Music Week editor Tim Ingham commented that while

1924-456: The existing YouTube Premium service and to Google Play Music All Access subscribers. The YouTube Music subscription was priced in line with its competitors at US$ 9.99 per-month; the price of YouTube Premium was concurrently increased to $ 11.99 for new subscribers. In 2018, YouTube Music reached multiple sponsorship agreements with Dick Clark Productions to serve as a partner for its television specials Dick Clark's New Year's Rockin' Eve and

1976-411: The figure may "initially seem alarming," he noted: "Unlike buying a CD or download, streaming is not a one-off payment. Hundreds of millions of streams of tracks are happening every day, which quickly multiplies the potential revenues on offer – and is a constant long-term source of income for artists." Amidst those rising number of streams, Spotify has also confirmed that they will require tracks "to get

2028-433: The game in an unfinished state or missing certain features to that captive audience , but without pre-orders, critical reviews of a game released in such a state would have harmed their sales. That itself then leads to issues of promotion and marketing of how to sell a game as to gain pre-orders, which can lead to some potentially deceptive practices. In some cases, a game can be significantly delayed or even canceled, making

2080-475: The game, such as art books, soundtrack CDs, or figurines of the game's characters. Such editions would be published only in limited numbers encouraging consumers to pre-order early to reserve one. Retailers made deals with publishers to allow for unique content for the game that could be obtained only by pre-orders through that vendor. Pre-ordering is a part of most major releases but is now a significant point of contention. Some consumers believe pre-ordering to be

2132-459: The idea to allow customers to reserve their personal copy before its release, which has been a huge success. Pre-orders allow consumers to guarantee immediate shipment on release, manufacturers can gauge how much demand there will be and thus the size of initial production runs, and sellers can be assured of minimum sales. Additionally, high pre-order rates can be used to increase sales further. Pre-order incentive , also known as pre-order bonus ,

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2184-656: The main revenue stream of digital music. In 2023, the International Federation of the Phonographic Industry (IFPI) reported that growth in revenue in the music industry had increased by 11.2% compared to the previous year. In 2021—its largest increase in the past 20 years—with paid music streaming services accounting for $ 12.3 billion in revenue ($ 2.2 billion YoY), and ad-supported streaming $ 4.6 billion ($ 1.1 billion YoY). Revenue from music streaming services had more than doubled since 2017, and

2236-534: The platform, and added premium original video content in an effort to compete with services such as Netflix . Concurrently, YouTube introduced YouTube Music , an app dedicated to music content on the platform. In 2016, Rhapsody was renamed Napster ; Rhapsody had acquired Napster in 2011. In 2017, Pandora launched a "Premium" tier, which features an on-demand service more in line with its competitors, while still leveraging its existing recommendation engine and manual curation. In October 2017, Microsoft announced

2288-642: The pre-ordering process useless. In most cases, a pre-order can be refunded to the purchaser prior to release. However, Nintendo has a policy for digital pre-orders that does not allow such refunds. Consumer authorities in Germany and Norway took Nintendo to court in 2019, arguing this practice violated the Consumer Rights Directive 2011 for the European Union. The court ruled in January 2020 that Nintendo's practice does not violate

2340-478: The release day required a significant amount of market forecasting. Episodes in the industry's past, such as the 1983 video game crash , had made publishers wary of producing in great excess to avoid the situation that led to the Atari video game burial . On the other hand, having too few copies available at the game's launch can lead to consumer dissatisfaction. Retailers like GameStop and Amazon.com discovered in

2392-450: The remaining balance. Retailers would be able to use pre-order money towards other investments, effectively accruing some interest on the pre-order fee. As the video game market grew with some widely popular series like Call of Duty and Grand Theft Auto , publishers would prepare by printing large runs of the games and having them ready to ship to retailers so that even consumers who failed to pre-order would likely be able to get

2444-416: The revenue from songs on their platform and send it back to record labels and management companies that own the rights to the songs. These companies then take another cut before sending it to the artists. However, in the past, there were ‘royalty models’ that would allow for artists to get a share of physical albums sold, but with the creation of streaming services, those models have now become obsolete. This

2496-717: The same experience in most countries. In July 2024, YouTube Music became available on Tesla cars. The availability of music includes many releases from mainstream artists and extends to any video categorized as music on the YouTube service. YouTube Music initially operated parallel with Google Play Music, but the latter was shut down in December 2020. Product manager Elias Roman stated in 2018 that they aimed to reach feature parity with Google Play Music before migrating users to it, but as of 2024 this has not been achieved. In September 2019, YouTube Music replaced Google Play Music in

2548-451: The services before Play Music is shut down. However, at the time of the shutdown, most feature gaps had not been addressed. A " pre-save " feature for upcoming releases was added in May 2020. In February 2023, YouTube Music launched Radio Builder, a free and from anywhere accessible web service for both paying subscribers and free users with iOS or Android devices. It allows users to create

2600-678: The user liked or disliked. The service's recommendation engine, the Music Genome Project , analyzes and determines songs based on various traits. Pandora initially operated within the royalty framework enforced by SoundExchange for internet radio in the United States, resulting in operational limitations: users could not choose individual songs to play on-demand, and could only skip a limited number of songs per-hour (although users could later receive more skips by watching video advertisements). Yahoo! acquired Launch Media and its LaunchCast internet radio platform in 2001 amid

2652-403: Was shut down after copyright complaints by the local royalty agency SACEM . After reaching agreements with SACEM, the site subsequently relaunched as Deezer , which reached seven million users by the end of 2009. Also in 2006, MTV owner Viacom partnered with Microsoft on an online music platform known as Urge , which included a music store, music videos and online radio stations, and

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2704-579: Was unveiled in October 2015 and released the following month; its release came alongside the unveiling of YouTube Premium (originally called YouTube Red ), a larger subscription service that covers the entirety of the YouTube platform, including the Music app. Although redundant to Google 's existing Google Play Music All Access subscription service, the app was designed for users who primarily consume music through YouTube. On May 17, 2018, YouTube announced

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