Over 70% of YouTube Music Plans Are Bundles - Following Spotify's Controversial Lead
According to recent DMN Pro data, 73% of YouTube Music subscribers access the platform through bundled plans for royalty calculations. This significant statistic emerges as Spotify faces scrutiny over its own bundling practices.
YouTube Music podium
Currently, YouTube Music has approximately 5.05 million accounts classified as bundles, representing 70.77% of their U.S. subscriptions. These bundled plans include:
- YouTube Premium Individual
- YouTube Premium Family
- YouTube Premium Student
The popularity of these bundles stems from YouTube's strong market presence, with 83% of American adults using the platform. Users can upgrade from YouTube Music Individual ($10.99) to YouTube Premium Individual ($13.99) to get ad-free viewing and additional features.
This widespread adoption of bundling extends beyond YouTube Music. Among major streaming platforms:
- Spotify: ~98% of subscriptions are bundles in the U.S.
- Apple Music, Amazon Music, and YouTube Music collectively dominate the U.S. music streaming market
- All major platforms rely heavily on multi-product packages
The bundling trend has significant implications for royalty payments. Publishers may miss out on substantial mechanical royalties due to how these bundles are calculated. This issue will likely be a central focus in upcoming Phonorecords V negotiations between streaming platforms and publishers.
NMPA music bundling image
Man wearing green shirt at screen
As competition in the streaming market intensifies, bundling strategies are expected to continue playing a crucial role in platform differentiation and user acquisition, despite ongoing debates about their impact on royalty payments.