Australia is among the countries in which Google's YouTube will launch a new music streaming service next week and soon unveil a premium service that will charge more for its original shows.
YouTube Music, which will be launched on May 22, comes with extra features like personalised playlists based on individual's YouTube history and other usage patterns, YouTube, owned by Alphabet Inc's Google, said.
It will compete directly with services from Spotify Technology SA, Pandora Media Inc, Apple Inc and Amazon.com Inc.
The news sent stocks of music streaming companies Spotify and Pandora lower by about two percent in the US on Thursday morning.
The video streaming company said it will also launch YouTube Premium, the revamped YouTube Red subscription service.
The new ad-supported version of YouTube Music will be available for free, while YouTube Music Premium, a paid membership without advertisements, will be available at $US9.99 (NZ$14.50) a month, YouTube said in a blog post.
YouTube plans to charge $US2 (NZ$2.90) more for its premium service, as it includes YouTube Music service along with its original shows. YouTube Premium will be charged at $US11.99 (NZ$17.40) for all new members, the company said.
"Google has an advantage given YouTube's more than a billion users and viewers. So, it has opportunities to convert some into YouTube Music listeners or premium subscribers," said Ali Mogharabi, analyst at Morningstar Research.
The growing adoption of paid music streaming has helped wean a generation of music listeners away from free or pirated music, and has led to services such as Spotify and Apple Music becoming the recording industry's single biggest revenue source.
Revenue from music streaming services overtook sales of CDs and digital downloads for the first time in 2017, according to the International Federation of the Phonographic Industry.
As well as the US and Australia, YouTube Music will launch in New Zealand, Mexico and South Korea on May 22. It will roll out to more countries in the following weeks.
Separately on Thursday, YouTube also said it would revamp YouTube Red, the paid version of YouTube that comes with original programming, to include YouTube Music at an additional price of US$2.