YouTube Music Joins Spotify in Bundle Strategy - Over 70% of Paid Plans Are Multi-Product Packages
According to recent DMN Pro data, approximately 73% of YouTube Music subscribers access the platform through bundled plans for royalty calculations. This mirrors a broader industry trend of music streaming services utilizing bundling strategies.
YouTube Music's bundled offerings include:
- YouTube Premium Individual
- YouTube Premium Family
- YouTube Premium Student
As of February 2024, YouTube Music has approximately 5.05 million accounts classified as bundles in the United States, representing 70.77% of their total U.S. subscriptions. The platform effectively leverages YouTube's massive user base (83% of American adults) by offering ad-free viewing and additional features for a $3 premium ($10.99 for YouTube Music vs. $13.99 for YouTube Premium Individual).
This bundling trend extends beyond YouTube Music:
- Spotify: ~98% of subscriptions are bundles (U.S.)
- Apple Music, Amazon Music: Also heavily rely on multi-product packages
- All four platforms dominate U.S. music streaming subscriptions
YouTube Music podium
The significance of bundling in streaming is expected to impact upcoming Phonorecords V negotiations, particularly regarding mechanical royalty calculations. Publishers stand to lose substantial revenue due to bundle classifications, with the NMPA preparing for intensive discussions about royalty determination methods for multi-product plans.
NMPA music bundling image
Man wearing green shirt at screen
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