How easy do you change the services you pay? Dropbox or Google Drive? Netflix or ... yeah... Netflix is unique, for now. What about Spotify or Apple Music? YouTube is launching its new streaming platform in multiple countries. It still is too early to say if they will defeat Spotify, but I don’t believe that is what they want. I'm sure YouTube Music wil play harder than Apple Music, and Deezer did against Spotify.
YouTube is a more significant threat because it already has billions of users, 1.8 to be precise. Despite having millions of users, Apple does not succeed all the time. I'm an iPhone user and I never even thought about migrating from Spotify to Apples Music. The most common strategy to push Apple users to use its products it to give no option. HomePod, Amazon Echo and Google Home competitor, does not play Spotify, Apple Music only!
A good argument is the example of the battle Instagram Stories Vs Snapchat. Snap launched its new social media; it was beautiful. They promoted a new feature behind a new feature, while Instagram started with the Stories late on the game, without anything fancy. Most of its users left Snapchat, including me, after that, just because Instagram was great and had similar features. I was used to Instagram, Snapchat was slightly harder to use. Today, I don't know anyone who plays with it. In the USA, some teenagers still use it, but I'm sure the platform will end soon.
A strong user base is relevant; it is comfortable for people to keep using the same service. Still talking about users, I see one more advantage to YT Music compared to Apple Music, eg. Millenials use Spotify; the Generation Alpha (who was born after 2010) plays on YouTube. Indeed, younger generations are always looking for the new. Kids are consuming a lot of online content. Moreover, I'm sure they can convince their parents to migrate to a new service provider.
It will be an exciting battle for the throne of the streaming market. YT Music differentiates itself by its algorithms. Content wise the propositions are different. Google bets on all content, as it is today, while Spotify focuses on official content. The business model and prices are similar. YT Music free version will give you complete access to its content, but it won't play on the background. While on Spotify you can still listen to music, and ads, with the phone locked.
I believe YouTube Music will take some market share from Spotify. On the other hand, I’m pretty sure it is not its first goal. Historically, YouTube struggled to monetise its platform. No subscriptions plan was succeeded. I believe they are launching a similar platform to convince people, who already pay Spotify, that it is worth paying for YouTube as well. The competition will be hard, but I will not migrate. Not yet.