We previously reported that YouTube has been planning to launch a music service as early as March, according to Bloomberg. YouTube has been engaged in ongoing negotiations with Universal Music Group and Sony Music Entertainment. Bloomberg now reports that both music labels have come to an agreement with YouTube and have signed long-term agreements. This paves the way for a music service that has been rumored to be coming to YouTube.
The contracts with Sony and Universal set royalty rates for music video rights holders, and promises a more aggressive approach to policing of user-uploaded copyrighted songs. With these agreements in place, YouTube can now fully pursue a Spotify-like music subscription service. This service from YouTube will reportedly feature content that will not be available for free on YouTube.
YouTube hasn’t had a good history with the music industry in the years of its existence, where music industry believes that the website hasn’t done a good job of policing copyrighted material. We currently don’t have details of how Sony’s and Universal’s contracts are with YouTube. If all goes well, we could be looking at yet another music streaming service on the market really soon. YouTube previously inked deal with Warner Music Group.