YouTube has announced that it will launch a paid streaming music service, amid criticism that its current, free video website might block the music videos of labels who don't agree with their terms, according to Reuters.
The popular site, which is owned by Google, has partnered with "hundreds of major and independent" music labels for the new service, the company confirmed in a statement on June 17.
The announcement confirms long-running rumors that the online video website will offer a paid music service to its customers.
The news also comes as some music trade groups have panned YouTube's plans to potentially block the content of select labels from showing up on YouTube's free, ad-supported site, unless they sign deals to take part in the new subscription streaming service.
The deals that the site is offering are on "highly unfavorable and non-negotiable terms," according to a release issued by the Worldwide Independent Music Industry Network in May.
YouTube has yet to comment on the terms of the deals, but did confirm in a statement that the new service would provide new revenue for the music industry, according to Reuters.
"We're adding subscription-based features for music on YouTube with this in mind - to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year," YouTube said in a statement.
YouTube has already signed deals for the paid service with 95 percent of the music labels that it previously had deals with, according to Reuters, citing a person familiar with the matter.
The source added that blocking certain music labels' videos from showing up on YouTube's free website might be necessary in order to provide a consistent user experience for the paid service.
The service is expected to launch at the end of the summer and will allow users to listen to music without any ads.
Other features include listening to music offline and the chance to listen to an artist's entire album instead of just individual songs.
Streaming music services like Spotify and Pandora are becoming increasingly popular among consumers as digital music downloads decline.
Apple recently confirmed plans to acquire streaming music service and premium headphone maker Beats for $3 billion last month. Google launched its $9.99-per-month Play All Access subscription music service last year as well.
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