YouTube is planning to launch a subscription based music streaming service in late 2013, competing with Spotify and other streaming service providers.
The service should allow users to purchase and store music files online, at about $10 (£6) a month through their mobile devices, while content can be accessed from any other devices.
According to reports, the streaming service would have a separate negotiating team, which is currently in talks with record labels.
YouTube said in a statement: "We're always working on new and better ways for people to enjoy YouTube content across all screens, and on giving partners more opportunities to reach their fans. However, we have nothing to announce at this time."
The service is expected to offer access to millions of music files on a monthly subscription and will include additional features like advertisement and free access to songs, according to the Fortune report.
Currently, YouTube does not charge users for its services but gets revenue from advertising in its music videos, a part of which is paid to record companies.
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