Earlier this month, more details emerged about the long rumored subscription service from Google that would merge Play Music and YouTube. Negotiations with music labels were cited as an obstacle at the time, but today, YouTube has struck the necessary deals.
Bloomberg reports that YouTube has struck the necessary deals with Universal Music Group and Sony Music Entertainment to move forward with its latest subscription service. These agreements govern royalty rates for official content and user-uploaded clips. Meanwhile, Warner Music Group signed a deal in May.
Artists should get better pay and more flexibility, with the labels winning some concessions from Google. Notably, Universal will have say over what appears on ad-supported channels, while YouTube will improve scans that look for copyrighted content in user uploads.
Codenamed “Remix” internally, this combined music service is rumored to feature on-demand streaming with video clips and other YouTube-like aspects. From the reports, YouTube is likely taking the lead on the service — not Play Music — when it launches in March.
Today’s report also provides more details, including how YouTube “expects to convert some of the millions of people who listen to music for free” into paid subscribers with this iteration. Meanwhile, some songs and videos might only be available on the paid service, according to a source speaking to Bloomberg.