Youtube will start to compete with Spotify and Apple Music next year with a paid music streaming service that might be called Remix. The company reportedly made a deal with Warner Music and is in talks with Sony, Universal and several independent record labels.
The news comes from Bloomberg, who quotes anonymous sources close to the music industry.
Record labels have been criticizing Youtube the last couple of years because many music can be listened to for free through music videos. These free stream generate less revenue for record labels compared to paid streaming services like Spotify Premium.
Google, the parent company of Youtube, already has a streaming service, Google Play Music. In the United States, Youtube also offers a paid service that makes it possible to view music videos offline. However, Youtube Red, as the service is called, focusses less on music and more on premium content from well-known Youtube stars.
Youtube's new streaming service,working title Remix, should be more similar to Spotify and Apple Music, but it will still offer music videos.
Bloomberg claims that Youtube has been negotiating with Sony and Universal for more than a year. Next year, Youtube also has to negotiate a new deal with Vevo, the company that licenses music videos from Sony and Universal.
