YouTube to launch Spotify rival streaming music service in 2018

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Spotify is the giant, and it only offers a streaming music option.

Warner Music Group has already signed on, though discussions with juggernauts Sony Music Entertainment and Universal Music Group have been underway for over a year.

YouTube plans to launch a new music subscription service in March, Bloomberg reported Thursday, in what would be Google-parent Alphabet's third attempt to challenge rivals Apple and Spotify. The service is also attached to Google's Play Music, which allows users access to either service, at no extra charge.

Google's worldwide music boss Lyor Cohen has previously spoken of the possibilities of bringing together Google Play Music's paid service with elements of YouTube.

YouTube has always been seen as one of the biggest obstacles for musical artists and labels, seeing as it's a go-to site for streaming free music. Vevo, owned by Universal and Sony, distributes music videos for their acts. Earlier this year, Goldman Sachs predicted in its Music in the Air report that the streaming music market would grow to $28 billion per year by 2030, and Google will certainly want a large slice of that pie. Namely, they have been disappointed in how YouTube Red is not music-centric enough and instead focussed on producing original video content.