Google to Launch New YouTube Music Service in March


In a new report, YouTube could introduce a brand new music streaming service sometime in March.

Before paid streaming, both major and independent labels had been in virtual free fall since the emergence of peer-to-peer services, starting with Napster in 1999.

Warner Music Group has reportedly already signed on to the service, while Universal Music Group, Sony Music Entertainment and independent label digital rights agency Merlin are now in talks.

More than 1 billion users visit YouTube each month and music industry executives say the service does not pay enough to compensate them for the loss in revenues.

While the music streaming service is expected to arrive in March, YouTube is still grinding out the details of its deals, so it could face delays that push out that launch date.

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The one major advantage YouTube could have over its rivals is a huge catalog of video content to complement its music library.

Making things a little spicier is the fact that music channel Vevo's contract with YouTube reportedly requires re-negotiation early next year.

YouTube hasn't had the same success as Apple or Spotify in convincing people to sign up for its paid music services, though it's not for lack of trying.

Though the music industry had hoped Red would be devoted to music, YouTube has positioned it as a home for original video projects like science-fiction comedy "Lazer Team" and a reboot of "The Karate Kid".