YouTube is preparing to launch a paid music streaming service later this summer and has already signed up 95 percent of music labels that are there on its current ad-supported free to view site, Reuters reports.
The world’s largest video streaming service might block labels that do not come on board its streaming from appearing on the site where viewers can watch videos for free in lieu of either pre-roll or banner advertisements.
While some in the music industry have said that the terms YouTube is asking for are unfavorable and non-negotiable, YouTube says it will help labels get a regular stream of revenue apart from the advertising revenues it already generates for them.
YouTube is expected to launch the music streaming service sometime this summer where users will be able to listen to music without any ads for a monthly subscription fee. Subscribers will also be able to listen to music in the offline mode when they are not connected to the Internet and will also be able to listen to complete albums by any artist rather than individual tracks.
Amazon too launched its own music streaming service, Prime Music, earlier this month. Apple too is expected to launch a similar music streaming service soon and the Beats acquisition is expected to help them to kick start the service. Google already has a $9.99 a month Play All Access music streaming service in the US.