Despite already owning one paid-for streaming music service – Google Play – Google-owned YouTube is now about to launch a nearly-identical service to provide music on demand from most of the major labels.  This will put YouTube in direct competition with Last.FM, Spotify, and all the other similar services.

Unfortunately, based on what we know so far, this service is not going to be friendly towards indie artists.  Unless you already have connections, there may not be much in the new YouTube service that will promote your music.

1 – Only labels need apply.

This one is absolute:  YouTube has no interest in dealing with artists directly, and their new streaming channel is only available to artists signed to labels who have signed with YouTube.

2 – The costs are making smaller labels balk.

No one has publicized exactly what YouTube/Google are demanding for access to the service, but it is known that several indie labels have said it’s more than they can afford – most notably XL Recordings, home of Adele and the Arctic Monkeys, among others.  They’ve also claimed the financial terms are less-favorable than on competing services.

3 – YouTube may be punishing indie labels.

This one is controversial, but the rumors are swirling:  YouTube may be actively removing unsigned labels’ material from their main video results.  There’s been a rash of take-downs, aimed at artists such as those on XL, and while YouTube claims it’s not a strongarm tactic, we haven’t heard many other explanations.

YouTube claims their streaming service will not affect their regular video search but we’re not convinced.

Is YouTube Premium A Mistake?

No one is speaking very favorably of this deal, and suspicions are high that Google/YouTube are now actively throwing their weight around to get sweetheart deals with the labels.  As things stand, unless YouTube seriously rethinks their policies, this new service will most likely not be able to effectively promote your music, unless you’re already signed.