YouTube Music Follows Spotify's Lead: 73% of Paid Subscriptions Are Bundle-Based for Royalties

YouTube Music Follows Spotify's Lead: 73% of Paid Subscriptions Are Bundle-Based for Royalties

By Marcus Bennett

December 30, 2024 at 03:11 AM

According to recent DMN Pro data, 73% of YouTube Music subscribers access the platform through bundled plans for royalty calculation purposes. This mirrors a broader trend in the music streaming industry, where major platforms increasingly utilize bundling strategies.

YouTube Music's bundle breakdown includes:

  • YouTube Premium Individual, Family, and Student plans
  • Approximately 5.05 million bundled accounts as of February 2024
  • 70.77% of total subscriptions when counting Student and Family plans individually

The platform's success with bundling largely stems from YouTube's widespread usage, with 83% of American adults using the main platform. YouTube Premium's $3 monthly premium over YouTube Music ($13.99 vs. $10.99) has proven effective in upselling customers to ad-free viewing and additional features.

This trend extends beyond YouTube Music:

  • Spotify: ~98% of U.S. subscriptions are bundles (primarily through audiobook inclusion)
  • Apple Music and Amazon Music also heavily rely on multi-product packages
  • All four platforms dominate U.S. music streaming subscriptions

YouTube Music podium

YouTube Music podium

Industry implications:

  • Bundling strategies are likely to persist as platforms compete for market share
  • Mechanical royalty calculations for bundles may change under Phonorecords V
  • Publishers face potential revenue losses due to bundle classifications
  • NMPA is preparing for intense negotiations regarding bundle-related royalty structures

NMPA music bundling image

NMPA music bundling image

Man wearing green shirt at screen

Man wearing green shirt at screen

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