The latter will be a separate service called "YouTube Premium" where consumers can subscribe to access original shows.
He promised that the new app would offer personalised playlists based on users' streaming history, much like Spotify's Discover Weekly.
An ad-supported version will be available for free also, but it won't include premium features such as background listening, song downloads and music discovery features.
The YouTube Music signup page has been opened up for interested parties with a Google or Gmail email address can add their details.
Google's YouTube said on Wednesday it will launch a new music streaming service, YouTube Music, next week and unveil soon a premium service that will charge more for its original shows. YouTube Music Premium, will be available for $9.99 (Rs 680 approx) per month.
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Although YouTube Red isn't now available in the United Kingdom, the changes mean that the service is finally on its way here, alongside a host of other European countries including Ireland, France and Germany.
With the video network taking the lead on the new joint offering, a revamped YouTube Music is launching today. Existing subscribers will be transfered to a YouTube Premium subscription, but they will continue to pay $9.99 a month as opposed to the $11.99 a month that will be charged to new subscribers. Re/code notes that ad-free here only applies to music videos, not the rest of YouTube.
The new service is evidence of a rapprochement between Google and the music industry, and new licensing deals were negotiated past year. Perhaps preempted by the numerous leaks, YouTube made a decision to just go ahead and announce YouTube Music and YouTube Premium before Tuesday's launch.
And what of Google Play Music?
"The days of jumping back and forth between multiple music apps and YouTube are over", wrote Elias Roman, product manager for YouTube Music, in a blog post. In theory, that gives YouTube a unique position to recruit people to level-up to paying music subscribers. The service will also feature music videos and live performances from the most popular artists. Both offer to remove the ads and let you watch your drivel offline.