The service is reportedly aiming for a March launch, but has some hurdles to clear first.
YouTube has plans to release a third paid music service next spring, Billboard has confirmed with sources familiar with the matter.
The new service, reported earlier by Bloomberg, is planned to arrive in March and is currently being referred to internally as Remix. It would include on-demand streaming and incorporate video clips and other elements from YouTube.
If YouTube hopes to hit that March launch date, it will need to lock in deals with labels. While Warner Music Group extended its licensing deal with the platform over the summer (which presumably included this new service in its terms), Sony Music Entertainment and Universal Music Group are still in renegotiations.