YouTube announced on Tuesday its plan to launch a paid streaming music service, which will block content from music labels that choose not to participate.
Music trade groups disputed over the new service this week, as the video-sharing website would block the content of music labels that would not participate in the new service. The new music streaming service will work on a subscription basis.
These trade groups called YouTube's next step unfavorable and non-negotiable.
"While we wish that we had 100% success rate, we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience," Robert Kyncl, YouTube's head of content and business operations told the Financial Times.
The video website declined to comment regarding the reactions to their new announcement, but stated that this new service would rake in new revenue areas for musicians, producers, and the music industry as a whole.
According to YouTube, the deal was presented to hundreds of mainstream and independent music labels.
"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, quoted by Reuters.
The company has reportedly currently finished the necessary paperwork for at least 95 percent of the music labels. To date, YouTube' service was purely based on ads. A source familiar with the deal stated blocking the content from music labels that would not participate in the new service might be necessary in order to streamline YouTube's subscriptions and help the company provide a consistent user experience for their consumers.
The new service will launch by the end of summer 2014.
