The new project will initially operate in five countries: USA, Australia, New Zealand, Mexico and South Korea, that is, in existing markets YouTube Red.
It is being reported that the YouTube premium will come along with benefits including complete ad-free experience, background playback and also the ability to download content for offline media consumption.
Under the new pricing system, there is no longer any way to subscribe just to YouTube's premium video content - including the apparently pretty popular original show Cobra Kai - without also getting the streaming music service.
YouTube has drawn billions of users by becoming the destination for listening to music without paying for it, as long as they can tolerate ads.
To kickstart the process, YouTube has chose to revamp and rebrand their paid service: YouTube Red; and relaunch YouTube Music as a standalone and bundled service, whose primary aim is to take on Spotify. The app is a subsidiary of YouTube app for music and music videos.
Now listen to your favorite music artist, watch Beyonce's Livestream or discover the new music, it's all here, at a single place, YouTube Music. With the pricier YouTube Premium, you'll get the ad-free YouTube viewing, original programming, video downloads, and background play that you get now with YouTube Red, plus the features of YouTube Music Premium, which launches on May 22. YouTube's latest push into paid music streaming faces stiff competition from rivals that already command massive audiences.
YouTube Music will receive a separate mobile app and desktop player.
When YouTube Music launches, Google Play Music will still be available. Following the changes the YouTube Red will now be called YouTube Premium and as the name suggests the service is premium.
YouTube plans to continue expansion during 2018.
Simultaneously, the company will pour more content to the Originals. Monthly charges apply for YouTube Red membership outside of trial periods. This means they will get access to YouTube Premium in $9.99 (for the US).
Oh, and speaking of YouTube Red: it's gone now. (If you're an existing YouTube Red subscriber, your rate will remain $US9.99, per Pitchfork.) YouTube Premium will include access to YouTube Music Premium. Do it now at a reduced price. Other countries will also receive a YouTube Music "in the coming weeks".