YouTube plans to launch a paid music service in March, according to the information. It is a third attempt made by the parent company Alphabet Inc. to catch up with rivals Spotify and Apple Inc.
This service could help appease record-industry executives who have pushed for more revenue from YouTube. The report also informs that Warner Music Group, one of the world’s three major record labels, has already signed on under new, more generous terms. The information also reveals that YouTube is also in talks with two others, one is Sony Music and Universal Music Group, and another is Merlin, a consortium of independent labels.
YouTube’s new music service, which is reportedly internally known as Remix. It will be the successor of the company’s existing music streaming service, Google Play Music. Google combined both the YouTube and Google Play Music teams in February. Google CEO Sundar Pichai had told investors previously on this year that the company planned to unite its music experiences under one roof.
The new service remix would include Spotify-like on-demand streaming and would incorporate elements from YouTube, like video clips. YouTube has reached out to artists to request for help in promoting the new service the report informed.
YouTube must overcome several hurdles to meet a March target. Not only has YouTube been trying to negotiate new deals with Universal and Sony for more than a year, but it also has a negotiation with Vevo looming early next year. Vevo, owned by Universal and Sony, distributes music videos for their acts.
At present, it is unclear what the new music service will mean for YouTube Red, the company’s other paid offering. YouTube Red was initially released with a heavy aim on originals, but the company has been shifting its marketing to put a bigger emphasis on ad-free YouTube viewing and music streaming in recent months.
YouTube hired former Warner Music executive Lyor Cohen last year to help oversee its music operations and serve as a liaison to the record business. Google folded much of the staff for Google Play Music into YouTube earlier this year, and Cohen announced plans to create a new paid service.