YouTube is continuing to grow steadily as a music platform. Over the past year, it added 25 million paid subscribers, bringing its total for YouTube Music and Premium to 125 million globally, including users in trial periods. This puts it close behind Spotify, which added 27 million paid users in the same period and now has 263 million subscribers.
YouTube’s subscriber growth is especially notable at a time when some are questioning the long-term growth of music subscriptions. A year ago, YouTube had 100 million paid subscribers, meaning it has added 25 million in just 12 months. In 2023, Universal Music Group CEO Sir Lucian Grainge pointed to YouTube Music as one of the fastest-growing players in the subscription space.
In addition to subscriber gains, YouTube also saw record ad revenue. In Q4 2024, the platform earned $10.47 billion in advertising, marking the first time it has crossed the $10 billion mark in a single quarter. Although Google does not separate out how much of that comes specifically from music, YouTube has previously stated that music accounts for around 25% of total watch time.
In September 2022, YouTube reported that it had paid over $6 billion to music rightsholders in the prior 12 months. Around 30% of that came from user-generated content, showing how both official and fan-created content are contributing to revenue. Since YouTube’s ad and subscriber income has increased since that time, its overall payout to the music industry is also expected to have risen, though updated figures have not yet been released.
YouTube’s Global Head of Music, Lyor Cohen, says the company remains focused on becoming the number one contributor of revenue to the music industry. Spotify is currently in that position, paying $10 billion to music rightsholders in 2024. “We are not going to stop until we become the number one revenue source, not just the best partner,” Cohen said in a recent interview.
Cohen also said he believes many of YouTube’s new subscribers are not switching from other platforms but are entirely new to paid music streaming. He explained that YouTube took time to build a product that met the needs of fans and industry partners before focusing on attracting users from competing services.
YouTube is also expanding its Premium Lite option in the U.S., offering a lower-priced alternative to full Premium. Cohen says the goal is to introduce users to the experience and encourage them to eventually upgrade.
When asked about competition, Cohen said he sees other companies investing in music as collaborators, not competitors. “We respect all consumers of music, whether they pay with money or with their attention through ads,” he said. “Both revenue streams are important.”
On the role of music videos, Cohen emphasized that visual storytelling remains a priority for YouTube. He said music videos can help fans connect more deeply with artists and noted that YouTube is exploring ways AI could reduce the cost of video production while maintaining quality.
Short-form and long-form video formats are both important to YouTube’s strategy. Cohen said Shorts can help users discover music quickly, while longer videos allow for deeper engagement. He likened the experience to flipping through vinyl records—some discoveries are brief, while others invite a more involved connection.
YouTube is also continuing to invest in AI tools, such as Veo 2, to help create cinematic content. Cohen said the platform’s close relationship with Google and its AI research teams offers tools that could support creativity in music and video production.
Looking ahead, Cohen said YouTube is still working toward becoming the leading contributor of music industry revenue. He acknowledged that the 2025 goal may not be met globally but believes they are close in some markets. “We’re either number one or number two, depending on the region. But we’re committed to putting in the work,” he said.
