YouTube is the largest music online source accessible to over 1 billion users worldwide. It was created in February 2005 by Chad Hurley, Steve Chen, and Jawed Karim. The holistic approach to the introduction of YouTube was to share videos with friends. However, with time, it involved sharing the videos worldwide. The YouTube team has evolved gradually with the need to meet the customers’ needs. It has significantly differentiated its products to target different markets and consumers. For example, the introduction of Google Play Music service in November 16, 2011. YouTube publicized the introduction of YouTube Music Key into the music market on November 12, 2014. However, the commencement was to occur in Great Britain, the United States and a part of European countries. The company’s aim was to assimilate into and substitute the Google Play Music service.
Introduction to You Tube Music Key Service
YouTube Music Key was introduced to rectify the discontent associated with streaming music and videos from YouTube (Ravenscraft, 2015).
- First, the Music Key eradicated the advertisement pop-up that appears while streaming a video (Trew 2015).
- Second, it enables the user to access music offline. The feature facilitates access to music in the absence of Wi-Fi and data bundles. It is achievable by organizing a music playlist while online and further saving it for later access. Therefore, it is inexpensive as it saves the users costs of the acquisition of data bundles in the absence of Wi-Fi.
- Third, the user can listen to music on the mobile phone when the YouTube tab is not active. Previously, the music halted on deactivating the tab thus not playing in the background.
The company’s aim was to create a platform whereby artists can earn revenue from their work. Access to free music has led to decrease in music sales. Consequently, the declines have negatively affected the artists’ revenues and the music market in turn. In contrast to their competitors, artists whose music is featured in the Music Key can earn allowances in royalties. The concept can be accredited to prior subscription services, for example, Spotify, Apple Beat’s Music and Pandora that charge a fee for the subscription (Sisario 2015). Nonetheless, Music Key’s dominant aspect over its competitors is that it is $2 less, and the users have access to more content. The Music Key costs $9.99 per month inclusive of complete accessibility to Google Play Music (Casserly 2015). However, the promotional fee went for $7.99 per month as a marketing strategy. Nevertheless, critics have questioned the ability of a fee-charging service to compete with free music that is wide spread due to the advance in technology. However, the users’ advantage is access to unlimited and uninterrupted music and movies. The supreme concept of Music Key in relation to the free service is quality assurance. In addition, there is stiff competition from other subscription services, for example, Spotify’s basic subscription that costs $4.99 per month (Mick 2015). In regard with YouTube Music Key impact on the global music market, it can be called significant. The Music Key’s primary benefit over its competitors is access to more content as it has a larger database than the other subscription services. The YouTube team ensures the users’ needs are met.
Analysis of the Legal/Security Issues
Piracy is the biggest challenge in the global music industry. It has been enhanced by the loophole between the music suppliers and the recipients. One of the YouTube primary solutions is the use of Content ID system and integration of music labels. There has been a claim of agreements between YouTube and Universal Music Group whereby YouTube eliminates videos that violate Universal Music Group copyrights. In June 2014, the company began modifying their license terms with artists. There was a speculation that they required all artists to avail all their music; however, the company recalled the notifications. It has been stipulated that the concept would have had an adverse impact on the independent artists. It was viewed as critical resolution to rule out independent labels consequently maximizing YouTube’s association with major music labels, which are a source of more revenue (Beta.wikiversity.org, 2015).
Copyright in the music industry is owned by the creatior of original content. Copyright for the independent artists is incorporated in the musical configuration, lyrics, and performances. Accordingly, their music is prone to negative elements, such as remixes and or cases when the song is redone altogether, which reduces the artist’s copyright allowances (Nissen, Lykke & Miles 2006). YouTube’s strategy involves making the payments to the major music labels prior to the music release. It is in a bid to monetize the content on YouTube Music Key. However, the artists are required to sign a contract licensing their product for Music Key. The revised contract entails the following terms for monetization purposes. First, the artists’ music is incorporated in both the premium and free services. Second, the entire directory will have advertisements on it. Third, on music release, the song should be availed to YouTube at the exact time of the official release (White 2012).
Business Model Canvas
Business Model Canvas is a crucial management tool, whereby the business sketches its business new or revised business plan. It can also be described as the company’s strategic tool to achieve its objectives. Alexander Osterwalder introduced the concept: the general business model canvas includes key resources, partners, activities, customer segments, value propositions, channels, customer relationships, cost structure and revenue streams. In the YouTube context, the business partners involve the music labels and movie production companies that provide the content. Major music labels supply unlimited content to YouTube on the artists’ behalf. Therefore, the supplier relationship mainly implies the music production companies rather than the artists.
Analysis and Justification for the Deployment of This New Service
YouTube serves an intermediary role between the music labels, movie production companies, and the users. Consequently, stability in the supplier relationship is directly correlated with YouTube’s efficiency. The good relationship ensures content is first available to YouTube Music Key subscribers before being aired on other channels. The key activities are essential in implementing the company’s business plans. A business’ success is largely reliant on a well-established supply chain (Saif 2015). In the YouTube context, the supply chain is consistent with ensuring that music is available for or prior to the official release data. This is a great incentive for the users to subscribe to the service. The key resources are the ones that are considered to be the assets to the company. They include human personnel, finances, physical property and intellectual resources (Fetscherin & Schmid 2003). With the introduction of Music Key, the revenue earned by YouTube is the result of copyrights from the artists’ music. Therefore, intellectual property is their major resource. Income is also derived from the advertisements that are run on its platform by various companies. The majority of companies have evolved from rigid advertisement methods to reach the target market. Another essential feature in the business canvas is the value propositions. The propositions can be qualitative, for example, affordable price, or qualitative upgrading the quality of the services on a regular basis. They involve the value of the products availed to the customers and information whether they meet the customers’ needs. By introducing the Master Key, they ensure that they avail diversified products in the market to serve unrelated or related clients. For example, YouTube also owns the Google Play All service and the free subscription service.
YouTube’s subscribers are retained by ensuring the performance of the platform is flawless, and accessibility is guaranteed (Dougan 2014). However, in contrast to other companies, the relationship between YouTube and the users is in the virtual realm. Therefore, it is an automated, self-service concept. The relationship is also enhanced by YouTube raising awareness on its product through Google advertisements. It ensures that there is a support system for the customers after purchase (Osterwalder et al. 2011). This is a sustainable approach to ensure the company retains the customer base in the midst of several online platforms. Cost structure is also integrated with the business model canvas. In relation to YouTube, the cost structure is value drive (Cheng, Dale & Liu 2008). This means that it is focused on value creation for the music market. However, the most prevalent fixed costs are the salaries to its personnel and utilities. The final detail in the business model canvas is the revenue streams. Subscription and advertising fee are the constant sources of revenue for YouTube Master Key. It ensures a consistent flow of revenue that is sustainable to finance the operations (GVSU CEO Club 2015).
YouTube provides a wide range of music and videos. The platform incorporates all the major works by artists all over the world. YouTube developed the YouTube Music Key as a subscription services to ensure artists earn revenue from their music.
Therefore, by subscribing to the service, it provides support for the global music market:
- First, the service eradicates the ad pop-ups that are available while streaming. Accordingly, viewing the music and movies is uninterrupted.
- Second, it provides a venue where the subscribers have access to their favorite playlists while being online. They save their playlist while they are online and can access it in the absence of Wi-Fi or data bundles.
- Third, the users can listen to music in the background of their mobile phones. It is enabled by the fact that the YouTube tab can be inactive as the music plays. It is contrary to the free services as the tab has to be active for the music to play.
- One of the major advantages of the subscription to YouTube Music Key is availability of music on the release date. In such a way, it ensures music quality is flawless, and the subscribers acquire it first.
- Despite the larger variety of music provided by the service as compared to the rival companies, YouTube renders the service at a relative low price. The Music Key costs $9.99 per month, which is $2 less than other subscription services.
Identification of Key Messages for the Storyboard
A well-organized storyboard presents information in the form of images with the intention of pre-visualizing in the animation sequence. Storyboards are used in the industry to implement advertisement campaigns. The relevant images accompany the narration. Therefore, the recipient can interpret storyboard by analyzing the images. The above storyboard is aimed to persuade the target audience to subscribe to the service. It highlights the advantages of YouTube Music Key feature over the free services. Therefore, it presents the essential information that is incorporated in the Music Key (Lehman et al. 2014). The storyboard aims at projecting its diversity in the production of differentiated platforms for different users.
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The storyboard is designed in relation to the photomatic concept whereby a series of still images are presented on a screen in a particular sequence. The flowchart is projected to portray the relationship between the narrations and the pictures. The YouTube company specifically uses the images; therefore, they are self-explanatory (Lee and Waterman, 2012). Consequently, the images are unique to the YouTube platform, which justifies using them in the storyboard. The images are to reduce the great amount of information in the storyboard. They are colorful in contrast to the usual sketched black and white pictures, which is of relevance to the pop and color associated with YouTube. It markets the idea of having high-quality videos. Smith & Hashemi (2011) state that it is irrelevant using black and white hand sketched images. With a similar background feature, it endures that the structure is consistent. Due to the defined structure for the storyboard, it also ensures the design is consistent. However, the presence of images accompanied by a narration is to ensure all the supporting images are appropriate.
Conclusively, the design incorporates the advantages of YouTube to the subscribers. In relation to the competition in the online subscription market, advertisements are intended to be convincing enough to lure the tech conscience population into investing into the service. The advertisements need to present the opportunity cost of the user as an advantageous feature.