It is common to see big companies developing entirely new solutions only for taking market share from its competitors. Sometimes theysucceed, such as Instagram Stories. Sometimes not, like Windows phone. Ithappens again, today.
YouTube just launchedits new platform YouTube Music or YT Music, a paid streaming platform. The king of online videos is now targeting Spotify. Indeed, YT Music User InterfaceDesign is extremely similar to Spotify's, so that users can get used to it faster, I believe. I just started testingit; I will give you more insights soon.
YT Music is betting on Google's ability to build algorithms, in this case the DJ Algorithm, how the new YT Music algorithm is called. It will enhance your experience by proposing the perfect content for you. They will use all historical data they have about you. Since they have much more data than Spotify, I’m pretty sure they will be more accurate. One example of how it will work is: by knowing your location and time; they can detect if you are at the gym, and consequently, the can recommend the right song to that moment.
I firmly believe in this DJ Algorithm. It is incredible how YouTube can suggest accurate videos after finishing any content on its main platform. Indeed, YouTube users saythatis one of the reasons that make YouTube so addictive. YouTube fans also love its special versions, such as live or remix, not available anywhere else. The new platform will feature all that, plus the capability of listening to music while the app runs in the background, while the phone is locked. You just need to pay the subscription.This YouTube limitation is what people hate the most about it.
The app is already running in 21 countries. I am sure it will be the most successful YouTube strategy to monetize. I am a Spotify evangelist and I believe this is the highestthreat they facedso far, to its 50% market share; a much harder competitor for market share than Deezer and Apple Music, the second and third places.