The video site are reportedly set to unveil their new music service in March, which is internally called Remix, with record labels like Warner Music Group already signed up. Talks have also begun with Sony Music International and Universal Music Group.
Music has also been one of the most popular genres on the video site for some time now.
It comes after YouTube revealed plans to have a 10000-strong moderation team to stop extremist videos being posted online.
Susan Wojcicki, CEO of YouTube, wrote in a blog post: "Human reviewers remain essential to both removing content and training machine learning systems because human judgment is critical to making contextualized decisions on content. Since June, our trust and safety teams have manually reviewed nearly 2 million videos for violent extremist content, helping train our machine-learning technology to identify similar videos in the future.
"We will continue the significant growth of our teams into next year, with the goal of bringing the total number of people across Google working to address content that might violate our policies to over 10,000 in 2018.
At the same time, we are expanding the network of academics, industry groups and subject matter experts who we can learn from and support to help us better understand emerging issues ...
"In 2018 we will be creating a regular report where we will provide more aggregate data about the flags we receive and the actions we take to remove videos and comments that violate our content policies. We are looking into developing additional tools to help bring even more transparency around flagged content."