Tencent and Spotify invest in each other in cross-shareholding deal

Tencent and Spotify invest in each other in cross-shareholding deal

Tencent and Spotify invest in each other in cross-shareholding deal

Music is one of the largest draws on YouTube with the genre bringing YouTube over than a billion viewers per month. The company's YouTube division is planning another subscription music product for early 2018, according to Bloomberg. In addition to opeining up new potential opportunities fro both companies, the deal aligns the two music streaming services in future licensing negotiations with major labels and music publishers. This is the third time, YouTube would be taking the dive into music streaming market trying to compete with renowned service providers like Spotify and Apple Music.

Music streaming companies Spotify and Tencent have taken minority stakes in each other's businesses. Vevo, owned by Universal and Sony, distributes music videos for their acts. A person familiar with the matter also told Bloomberg that YouTube has reached out to artists to help promote the new Remix music streaming service. Google Play Music launched in 2011 but still isn't as popular as its rivals. YouTube Red became a service which later turned out to become a service with ad-free videos.

Meanwhile, Spotify has crossed over 140 million monthly users, out of which, 50 million are paid users.

The launch of the YouTube's Remix music streaming service shouldn't be a huge surprise since it was already rumored to be in the works since July of this year. On the other hand, Apple Music has over 30 million subscribers.

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But what about YouTube Red, isn't that good enough?

Music streaming has been accelerating over the last number of years, with data from the United States music industry trade group, the RIAA, showing more than 30m people in the country are now paying for a subscription music service.

The service is reportedly going to be called "Remix".

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