Understanding the Product:

About Youtube Music:

YouTube Music is an audio streaming service. It lets users watch and listen to a nearly endless catalogue in an app designed for music discovery.

They have a free version and a premium version. The premium version has the following benefits:

1. Ad free Music
2. Download offline
3. Switch from audio to video.
4. Play music in the background while using other apps
5. Access paid membership benefits and music library in the YouTube Music app, even if the user is in a country/region where YouTube Music isn't available.
6. Shuffle downloads
7. Cast music to a speaker or TV device

Subscription Options:

A user can either purchase a Youtube music premium membership or a Youtube premium membership.

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Purchase options for premium:

1. Buy individual plans (Without renewal) with one time payment
2. Buy a plan that renews with monthly payment
3. Family plan
4. Student discounted plan

The price difference between a Youtube Premium and Youtube Music premium plan is very low at about 10-20 Rs per month. Thus, a user that buys a premium is likely to buy a Youtube premium rather than a Youtube music premium.

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Youtube Music features:

Following are some of the primary features that users can enjoy on the app:

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1. Personalised mixes, and playlists for every mood, activity or listening history.
2. Podcasts
3. Custom radio: Combine different artist to find other music. One can select the vibe, and customise the songs that will play on the radio.
4. View lyrics
5. Samples: like reels but for music. Shortform video music that expose you to new music.
6. View comments and comment in app. (Linked to the comments on YT)
7. Live Performances
8. Switching from audio to video (Both from YT)
9. Offline Listening

Youtube Ecosystem:

Podcasts, YouTube Premium, Google Assistant and other Google devices

What does the internet say?:

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Sources: 1. Reddit threads

2. https://www.headphonesty.com/2021/03/review-youtube-music
3. ​ https://medium.com/@cameron_rivera/spotify-vs-youtube-music-one-year-later-8928b24019f2

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Summary of the feedback/reviews on YT Music:

• What most users like is the extensive library of songs available.
• The opinion on the algorithm is mixed. Some love it and some hate it.
• There are multiple features that competitors like Spotify provide that aren't available on YouTube Music.
• Being unable to search within the playlist is a huge pain.
• The seamless transition between YouTube and YouTube Music for both songs and podcasts has received mixed reactions. Some users appreciate the ability to continue listening to YouTube Music from where they left off on YouTube, regardless of switching from their computer to their phone. However, others prefer to keep their recommendations separate on each platform.
• A common grievance is that YouTube Music does not recommend newer songs.
• Opinion on the UI was also mixed.
• Users find the streaming quality to be not as great as competitors. However, this does not matter to everyday listeners.

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Youtube Music Core Value prop:

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YouTube's core value proposition is to offer a diverse and personalized audio catalog, seamlessly integrated with the broader YouTube platform, and to create an amazing music experience.

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How do users experience the core value prop?:

• Listening to songs
• Listening to podcasts
• Through YT radio
• Through podcasts
• Custom playlist
• Personalised mixes, playlists for every mood, activity or listening history.
• Viewing lyrics
• Samples: like reels but for music. Shortform video music that expose you to new music.
• Viewing comments
• Videos
• Live Performances

What makes a user active?:

Free User:

Listens to audio for at least 1 hour per week.

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Premium User: ​

Someone who listens to at least 1 hour of audio in a week.

Renews the subscription once it expires

Natural Frequency:

The natural frequency will measure how many hours of audio a user listens to rather than time spent on the app as a user can listen to audio even when they are not actively using the app. `

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Power Users: 15 hours per week

Core Users: 5-15hours per week ​

​Casual Users: 30 mins - 5 hours per week

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​What is the best engagement framework for your product?

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Segmentation:

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Some data on Segments:

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​Sources: https://wifitalents.com/statistic/youtube-music/

https://www.start.io/audience/youtube-music-users-in-india

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ICP-based Segmentation:

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Casual/ Core / Power

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Engagement Campaigns:

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To think about designing Engagement Camapigns, the approach would be as follows:

1. How can we increase time spent on Youtube?
2. The same ICP can include casual, core, or power users. How can YouTube Music elevate casual and core users within the same ICP to the next level?
3. Casual users may use YouTube music as their primary or secondary audio streaming app. Is it possible to make YouTube music their primary app?
4. From research it was found that some features were not discovered by the majority of the users. Can the feature discoverability be increased and would that lead to higher engagement and higher CVP for the users?
5. Can encouraging users to download the app on desktop, or use YT music on their desktop increase engagement?
6. How could we get free users to pay for the subscription?
7. Could reminding users of the core value prop i.e. vast music library and diversity increase the perceived value of the product?

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Engagement Campaign 1: Science-backed sounds to increase focus

Segmentation:

ICP: The Focus seeker.

Moving core users to power users

Goal of the campaign: Increase the time spent on the platform listening to music.

Pitch/Content:

Did you know that certain sounds have been scientifically proven to boost your focus? Did you also know that there is something called green noise?

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Rationale: Mentioning green noise to induce curiosity. Mentioning that some sounds have been scientifically proven to boost focus can be very lucrative to the focus seeker.

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Channel: push notifications.

Offer:

Playlist collections with playlists like Classical Music and Nature Music that have been scientifically proven to improve productivity.

Examples can be found here: https://www.entrepreneur.com/leadership/these-6-types-of-music-are-known-to-dramatically-improve/325492#:~:text=Classical%20music%20is%20also%20known,Bach%20Classical%20Study%20Playlist

Frequency and Timing:

Frequency: Biweekly

Timing: 10/11 AM (When people are usually doing focused work)

​Success Metric:

CTR, Number of clicks on the playlists, time spent on songs that are part of the playlist collection

Other metrics to track:

Number of songs from the playlist collection that were liked, number of personal playlist created from the playlist collections.

Ramp up Milestone:

Inform them of the increase in productivity they can expect by listening to such music regularly. Eg: Listening to Nature Music while working for a week has shown to increase productivity by x%.

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​​Engagement Campaign 2: Pushing Active but Free Users to Buy the Subscription.

​Segmentation:

ICP: The Everyday Music Listener who has been active for more than two months.

Moving casual free users to core premium users

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Context: Some thingsSpotify that deter a free "Everyday Music Listener" from buying the subscription are: 1. Subscription cost (Eg. students) 2. friends using spotify and they want to fit in 3. YT Music might be their secondary app (They might use it because they have bought YT Subscription or for specific features like playing on a laptop) 4. missing features on YT Music that are available on Spotify.

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For this campaign, we will focus on these reasons: Friends use spotify and they want to fit in.

Goal of the campaign: Try to target the reasons that could turn a free user into a paid user.

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Pitch/Content: ​

1. We love how unique you and your music tastes are. Check out these playlists with songs exclusive to YT Music.

Convince 4 other people to subscribe and get a joint subscription at 149/month

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Rationale: The copy makes the user feel special and also reinforces the core value proposition of the diverse music library found on YT Music. The copy also targets the exclusivity bias.

Pitching the family plan will inform them about how low the subscription can cost and hopefully seal the deal about their choice of audio platform. Moreover, if they get 4 other people to sign up, they will feel a bit less left out.

2. Join the vibrant x-member community in (Their area) and discover a diverse music library that's exclusive to us.

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Rationale: Social proof and reinforces the core value proposition of the diverse music library found on YT Music.

Once they click on the notification: Join our community, (Name), and enjoy a 50% discount by subscribing today.

Rationale: Providing a 50% discount to active and free users could be beneficial as it could be an effective way to price differentiate, it could help make YT Music their primary music app.

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Channel: push notifications.

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Frequency and Timing:

Frequency: Weekly

Timing: 7 PM (When users are free to make payments.)

​Success Metric:

CTR, Number of subscriptions in the week.

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​​​Engagement Campaign 3: Introducing the Radio Feature.

Context: From research it was found that while active users liked discovering new music and liked the YT Music algorithm, they had not used the radio feature mostly because they were unaware of the feature. YT radio could significantly increase music discoverability and engagement.

​​Segmentation:

ICP: The Everyday Music Listener, Music Enthusiast and the Focus seeker.

Moving casual to core and core to power.

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Goal of the campaign: Increase the use of the Radio feature and thus the time spent on the app.

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Channel: In-app notifications.

In app notifications:

Trigger: The notifications would show after a user goes through curated playlists on the app.

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​Pitch:

Looking for the perfect vibe? Explore YT Radio with advanced customization options.

Push Notifications:

🎶 Dive into your ideal vibe with YT Radio’s personalized tunes! Discover and customize your music journey today. 🎧

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Frequency and Timing:

Frequency: Once a month

Timing: After they go through a curated playlist on the app. If they shuffle or search multiple times on the app and keep skipping songs.

​Success Metric:

CTR, Number of new users using YT Radio, Number of users using YT Radio more than twice after the notification, Time spent using YT Radio.

​Ramp up Milestone:

"Looks like you're enjoying YT Radio! Enjoy an extra month with us to explore more features.

You might also like the 'Hum to search' feature—simply go to the search bar and click the microphone icon."

​​​Engagement Campaign 4: Find songs that touch the soul!

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​Segmentation:

ICP: Music Enthusiast

Context: A music enthusiast is deeply interested in music. Thus, what would drive him to spend more time on the app is to explore more songs and find music that touches the soul.

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Goal of the campaign: Enable discover other artists and songs that could be potential listened to very often by a music enthusiast. This can be done by encouraging the user to create "Rare Finds" Playlists and share it with the world and also discover other "Rare Finds" in the genre they enjoy.

Flow: User creates "Rare Finds" Playlists and shares it with the world. The playlist with the highest views and likes in the city gets an expensive google device (Allowing them to enjoy the benefits of being part of the ecosystem as well)

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Channel: In-app notifications, Email.

​Pitch: Hey Music Enthusiast,

Uncover songs that touch your soul and share them with the world! Create a "Rare Finds" Playlist and explore new artists and tracks.

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Win Big!

The playlist with the most views and likes in your city wins a premium music device!

Start your musical journey now and let your unique taste shine!

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Frequency and Timing:

Frequency: 3 Emails with a weeks gap. 1 In app notification.

Timing: After they have created a private playlist.

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Offer: Free Google Device.

​Success Metric:

CTR, Number of playlists turned public.

​Engagement Campaign 5: Re-iterating the Core Value Proposition.

​​Segmentation: All users.

​Context: Reinforcing the core value proposition could help increase the perceived value of the app and maybe get them to explore some features.

​Channel: push notifications, in-app notifications, Email marketing.

​Pitch: Did you know that YT Music has the largest music library? Discover the hidden gems and uncover rare tracks you won't find anywhere else.

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Frequency and Timing:

Frequency: Biweekly

Timing: After 7 PM

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​Success Metric:

CTR, Increase in time spent on the app.

Retention Design

Macro View

YouTube music has both free users and paid users. While free users can churn at any point, paid users will likely churn only once their plan expires.

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Below is the retention curve of spotify. There is a steep drop till M2 and then the curve seems to flatten.

Source: Bloomberg Second Measure: https://secondmeasure.com/datapoints/spotify-paid-subscription-plans-customer-retention/

As compared to Spotify, YT Music has a lower brand value and it lacks in features. Additonally, Youtube Premium also includes Youtube Music premium, a user with a subscription may continue using Youtube but may stop using Youtube Music at anytime.

We will assume that the curve flattens at about the same time as spotify i.e at month 2, however, the annual churn would be higher at 35%.

Micro View:

Which ICPs drive the best retention? :

The Music Enthusiast is expected to drive the highest retention as they greatly value the core value prop of YT Music, i.e the diverse and large music library. Followed by the Music Enthusiast would be the Focus Seeker and lastly the Everyday listener as the Everyday listener cares about the features they might miss out on and being able to fit in with their friends.

What acquisition channels drive users that retain better?:

Referrals

Organic downloads from the play store

WOM

​What sub-features or sub-products drive the best retention?

Curated playlists

Collaborative playlists

Offline Listening

Reasons for Churn:

Voluntary Reasons:

Price Changes

User Experience

They like a specific feature on another app that they just got aware about.

Annoyed by the Ads (Free users)

Dislike the algorithm and recommendations

Annoyed that music stops playing when one closes the app (Free users)

Students unable to renew their student plan after graduation

The family plan was cancelled by the family manager

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Involuntary Reasons: ​

Price

Ecosystem preferences

Payment issues

Moving to regions that do not support YT Music

Device compatibility

Sudden time constraints

Negative actions:

Support tickets

CSAT

Lower NPS

Exporting songs out of the platform

Deleting payment information

Visiting the unsubscribe page

Reduced time spent listening to audio (May have started using a competitor platform)

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Resurrection campaigns:

Campaign 1:

​Segmentation: Users that have not continued their subscription after a price change.

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Pitch: Higher prices but new and improved features! [Mention the latest changes on the app]. Renew your subscription today to get the first 2 months at a discounted price.

Channels: Email, Push notifications.

Offer: 50% off the first two months then automatically renews at the original price.

Frequency and Timing:

Once the user cancels their subscription. (If they cancel it post the price change and within two weeks of the change.)

Success Metrics:

CTR, renewal of subscriptions.

​Campaign 2: Resurrecting other members of the family

Segmentation: Users that were a part of the family plan earlier but the plan has been cancelled.

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Pitch: we noticed that X(Name of the family manager) has cancelled their plan, and we miss having you with us! Come back and enjoy YouTube Music Premium at 50% off for the first two months.

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Channels: Email, Push notifications.

Offer: 50% off the first two months then automatically renews at the original price.

Frequency and Timing:

3 emails weekly if the user has not bought a new subscription 5 days into the cancellation of the family plan.

Success Metrics:

CTR, renewal of subscriptions.

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Campaign 3:

​Segmentation: Users that are considering unsubscribing. Users that click on:

1. Purchase and memberships option and stay there for 5 seconds or more 2. Users who click on the manage membership option

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Pitch: 100 Million subscribers and your music is unique to you. Check out this playlist with some of your most loved songs!

Rationale: Reminding them of what they loved about YT Music, getting them to listen to music more on the app.

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Channels: Email, Push notifications.

Offer: Playlist with some of their most loved songs.

Frequency and Timing:

One hour after they have lingered on the unsubscribe page.

Success Metrics:

CTR, Increase in time spent.

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Campaign 5:

Segmentation: Free users that have reduced the time spent listening to audio

Context: Free users who have reduced the time spent on YT Music may have been exploring other competitor platforms.

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Pitch: What is that? A 50% off on subscriptions? This means ad-free music, offline downloads and switching from audio to video at half the price. Valid only today.

Rationale: A discount can get users to consider YT over other platforms. An offer valid only for one day creates urgency. An offer can also urge a free user to subscribe. Listing down the benefits of the paid plan can nudge the user further.

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Offer: 50% off on the subscription valid only for one day.

Frequency and Timing:

AN active free user (For at least three months) has reduced their time spent listening to music through the app.

Success Metrics:

CTR, Subscription purchases.

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