YouTube to launch a new Spotify rival, codenamed 'Remix', in 2018

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YouTube to launch a new Spotify rival, codenamed 'Remix', in 2018

YouTube will launch a music streaming service next March, according to report published today by Bloomberg.

Youtube is reportedly planning to launch a paid music streaming service that would compete directly with Spotify (spotify) and Apple Music, and go a long way toward appeasing record executives who complain the site takes too big a bite of their revenues. Currently, YouTube has secured Warner Music Group, but is looking to also Sony Music Entertainment and Universal Music Group onboard. Nonetheless, with Spotify having 60 million paying users and Apple about 27 million subscribers YouTube will have a mountain to climb to catch up. The service will combine both traditional music streaming and music videos, according to the report.

The service will tentatively be called Remix, and while YouTube's parent company Alphabet Inc. hasn't officially announced anything, people familiar with the move told Bloomberg that Warner Music Group is already on board. It also comes after a raft of sustained criticism from the industry that YouTube does not compensate artists enough for content hosted on the platform.

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

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".

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