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Report: YouTube to launch new paid music service in March

YouTube LLC is planning to launch a paid music service in March 2018 with music from all major record labels, people familiar with the matter told Bloomberg News.

The Google Inc.-owned video streaming service is said to have already agreed to a deal with Warner Music Group Corp. YouTube is currently in talks with the Sony Corp.'s Sony Music Entertainment Inc., Vivendi SA's Universal Music Group. and Merlin Network, a global digital rights agency that represents the world's independent labels.

YouTube is also likely to begin negotiations with Vevo LLC, a music video distributor co-owned by Universal and Sony, in early 2018.

Google is looking to better compete with rivals Apple Inc. and Spotify Ltd. with the new service, internally referred to as Remix, according to the report.

The new service is expected to include Spotify-like on-demand streaming and would incorporate elements from YouTube such as video clips, and YouTube has reached out to artists to seek their help in promoting the new service, according to the report.

Google's previous attempts at online music business have not seen the same success as Apple Music and Spotify.

In 2011, Google introduced audio streaming service Google Play Music. In 2014, YouTube Music Key was launched with ad-free music videos which then became YouTube Red in 2016.

Google is a unit of Alphabet Inc.