- Re/code reports Google (GOOG -2.2%, GOOGL -2.1%) is prepping a subscription service that pairs two YouTube offerings previously expected to be sold separately: YouTube's Music Key service (provides ad-free music videos and audio-only streams, currently in beta), and a pending service (confirmed in April) providing ad-free access to YouTube content in general.
- Notably, Re/code adds video industry sources have been told by Google it plans to charge just $10/month for the combined service - a price matching that charged by Spotify, Apple, and many others for standalone subscription music offerings. As the site observes, Google could struggle to turn a profit on the service at that price - Spotify has been losing money, and doesn't have to worry about payments to (non-music) video partners.
- YouTube, for its part, only says it's "progressing according to plan to provide fans more options in how they enjoy content on YouTube," and that content partners representing over 95% of watch time have agreed to support an ad-free video service. The online video giant recently told content owners they must agree to support an ad-free service by Oct. 22, or else their videos "will no longer be available for public display or monetization in the United States."
- Shares are selling off on a day the Nasdaq is down 2.1%.