2018 is going to start with a bang: YouTube looks set to launch a new music streaming service in March next year. Currently, YouTube has secured Warner Music Group, but is looking to also Sony Music Entertainment and Universal Music Group onboard.
If the deals go through and the service is launched this should go some way in helping to appease the music industry, with YouTube coming under for years over not stringent enough copyright infringement policing and not paying artists and labels their dues. But royalties garnered from a paid on-demand service in line with that of Spotify's (aapl) could turn out to be a boon for record labels. The service will combine both traditional music streaming and music videos, according to the report. Nonetheless, with Spotify having 60 million paying users and Apple about 27 million subscribers YouTube will have a mountain to climb to catch up. Music is one of the most popular genres of video on YouTube, which attracts more than a billion users a month. YouTube has reached out to artists to seek their help in promoting the new service, one of the people said. 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.