YouTube plans to introduce a paid music service in March, according to people familiar with the matter, a third attempt by parent company Alphabet Inc.to catch up with rivals Spotify and Apple Inc. Now, on the back of the success of Spotify and Apple, they are beginning to recover. Only Warner has already signed on for the service, according to the report.
According to the report, YouTube has already finalized a deal with Warner Bros Music Group and is now in talks with Sony Music Entertainment, Merlin (a label covering independent artists), and Universal Music Group.
The new service could help appease record-industry executives who have pushed for more revenue from YouTube. The new service would incorporate certain YouTube elements, including video, in a Spotify-like format. YouTube launched ad-free, subscription-based YouTube Red in 2016 featuring exclusive video content from popular creators such as Lilly Singh Michael Stevens.
At this point, it's unclear what the new music service will mean for YouTube Red, the company's other paid offering. At the moment YouTube is reportedly also in talks with a number of artists. Apart from this, the company has also been reaching out to artists to market its service when it is launched. Music Group. However, it is still in talks with Sony Music Entertainment, Merlin and the Universal Music Group regarding the details of the music streaming service.