YouTube, the leading video streaming service, planned to launch its music streaming service in March, according to sources familiar to the matter. This launch would mark an effort of Alphabet to compete against rivals like Apple and Spotify.
Warner Music Group, which is one of the major record labels in the world, has signed a deal with YouTube for the new service, according to sources. Moreover, the video steaming company has been discussing about the deal with Sony Music Entertainment, Universal Music Group, and Merlin, which is a consortium of independent record labels.
Music has been one of the most popular genres on YouTube, which has more than one billion active users every month. New service, internally referred as Remix, would feature on-demand streaming service and integrate various elements from YouTube. Moreover, the service has reached out to music artists to promote the platform.
However, there are many hurdles in front of YouTube to achieve its launch target. The company has been negotiating a deal with Universal and Sony from last year. Moreover, it would run negotiations with Vevo in early 2018.
YouTube recruited former Warner Music’s executive Lyor Cohen to supervise its music operations in 2016. Moreover, he has been serving as a liaison to the record business. He had announced plans to launch a new paid music streaming service in early 2017.
Meanwhile, Spotify has crossed over 140 million monthly users, out of which, 50 million are paid users. On the other hand, Apple Music has over 30 million subscribers. YouTube’s music streaming service is expected to intensify the competition in the industry.