10 December, 2017
Music streaming company Spotify and the music arm of China's Tencent Holdings Ltd will buy minority stakes in each other's businesses, the companies said in a statement on Friday. According to the Swedish music streaming service's website, Spotify had, as of July, over 60 million subscribers and 140 million active users who can access to over 30 million songs. No pricing details have been confirmed as yet.
According to Bloomberg's report, Warner Music Group has already signed onto the service with Sony Music Entertainment, Universal Music Group and independent label consortium Merlin also said to be in talks.
So far, Google has managed to get Warner Music Group on board, says the report, but discussions are now ongoing with Sony Music Entertainment, Universal Music Group, and independent labels. With YouTube continually pulling in major online traffic, a lot of which is dedicated to music streaming, music executives want in on the action.More news: Bloomberg Admits: We Goofed on Trump-Russia
Now reports suggest YouTube is about to revamp its offering with a new service called Remix. Publishers, labels and artists alike have long accused YouTube and other services of hurting their profits.
At the end of last month it emerged YouTube's system for reporting sexual comments on children's videos has not been working for more than a year.
The decision to push YouTube as the face of Google's revised service follows internal restructuring earlier this year that saw much of the Play Music team moved over to work on YouTube-related projects.