YouTube Music used to allow users to listen to music for free with ads. However, in recent years YouTube has made various changes that have limited the amount of free music available on the platform. The main reasons free music options have been reduced include licensing costs, push towards YouTube Premium subscriptions, and record label demands.
Background on free music on YouTube
YouTube has long been home to a massive catalog of music that users could listen to for free. This included official music videos from artists, lyric videos, live performances, covers by other creators, and auto-generated “topic” channels that compiled songs from an artist.
YouTube operated on an ad-supported model – users could listen to the music for free as long as they watched/listened to intermittent ads.
This free, ad-supported model benefited music fans who got free music and benefited rights holders who got revenue from the platform.
However, over the years the amount of free music available has declined. Users now find more and more videos blocked or songs unavailable, often with messages stating the video is not available in their region.
The rise of music streaming services like Spotify and Apple Music have given users other options for free music with ads, leaving YouTube to focus on pushing its paid subscription service.
The cost of music licensing
One of the main reasons free music availability has been reduced on YouTube is the high cost of licensing all the music from rights holders like record labels, publishers, and PROs.
As YouTube grew into an indispensable source of music discovery and listening, music rights holders started charging more for licensing their catalogs on YouTube.
With billions of music streams happening daily on YouTube, the licensing costs were adding up and eating into YouTube’s profits despite the platform’s ads revenue.
YouTube has to pay huge advances and licensing fees to Universal Music Group, Sony Music Entertainment, Warner Music Group, Merlin, and other labels/publishers.
The exact figures are not public but licensing costs are YouTube’s biggest expense. As these costs ballooned, YouTube likely decided it could no longer sustain offering so much free licensed music supported only by ads.
Reducing this catalog helps control their licensing expenses.
Pushing viewers towards YouTube Premium
In addition to high licensing costs, the shift away from ad-supported free music helps YouTube promote its paid streaming service, YouTube Premium (formerly YouTube Red).
YouTube Premium provides an ad-free listening experience and allows background/offline playback for $10.99 a month.
The reduced availability of free music acts as an incentive for users to upgrade to the paid Premium option if they want uninterrupted access to music.
YouTube likely determined they could generate more revenue by converting and retaining paying subscribers than solely relying on the ad-supported model. Putting more limits around free music helps drive Premium sign-ups. And once subscribed, users are less likely to cancel their membership if it’s the only way to reliably access music on YouTube.
Record label pressure
Record labels have also applied pressure on YouTube to limit free ad-supported music.
As YouTube grew into a top music consumption platform competing with the labels’ own streaming services, they wanted YouTube to push more viewers towards paid options like Premium.
Allowing unlimited free access to music via YouTube was seen by labels as undervaluing music and training consumers not to pay for listening.
Labels likely negotiated various restrictions around free music availability into their licensing deals with YouTube.
This includes putting limits on which songs are available ad-supported, blocking or taking down unauthorized uploads, and other rules to protect their revenue streams.
YouTube agreed in order to secure licensing, despite the impact on users.
A strategy focused on monetization over free users
YouTube was likely facing shrinking profits from all the free music being consumed on the platform.
Between the huge licensing fees, record label pressure, and rising competition, YouTube strategically started emphasizing paid monetization over the free ad-supported experience.
Reducing free music availability helps drive Premium sign-ups, keeps labels happy as a licensing partner, and gives YouTube more revenue options beyond just ads on free videos.
For users, this shift means less music for free. But for YouTube, pivoting to focus more on paid subscriptions, original content, and exploring additional revenue streams has been crucial to remain profitable and stay competitive.
The era of unlimited free music on YouTube has faded as the company has prioritized strengthening its business model.
Users now have to rely more on a mix of ad-supported and paid options to access music via YouTube.
YouTube Music and other options
While licensed music on regular YouTube has declined, users do have some options:
YouTube Music – YouTube’s dedicated music app/service offers an expanded music catalog compared to regular YouTube. However it also mixes some paid subscription options and restrictions around video playback.
Upload original music – Artists and creators uploading their own original music have more control over enabling free streaming.
Use unofficial uploads – Some users re-upload songs under different accounts/titles to avoid detection.
Listen to live performances – Live concert footage often flies under the copyright radar and avoids takedowns.
Listen to cover songs – Covers/parodies have more flexible copyright rules allowing monetization.
However, the era of being able to easily search for and play virtually any song on demand for free on YouTube does seem to be ending. Users have to be savvier and patch together various sources to maintain free access. Or ultimately accept that subscriptions are becoming mandatory for full access.
The future of free music on YouTube
It’s unlikely there will be a full return to totally unrestricted free music on YouTube.
Licensing costs will remain high. Record labels will continue demanding more paid monetization.
And YouTube will keep incentivizing Premium sign-ups while deprioritizing free.
However, free ad-supported music streaming is still important for user experience, music discovery, and creator growth.
So YouTube has to balance several competing priorities.
YouTube may explore things like an ad-supported free tier of YouTube Music, more varied Premium subscription tiers, bundles with other services, or revenue sharing deals to help align incentives with labels/publishers.
More flexibility around what content is ad-supported vs. paid-only could help strike a balance.
But the days of free access to all music seem to be over.
Music fans will likely continue to find workarounds and unofficial sources. But overall, YouTube’s shift away from free music access in favor of subscriptions is here to stay.
The platform had to adapt its business model even if that meant sacrificing the unlimited free music experience users initially fell in love with.
