YouTube Music, which will be launched on May 22, comes with extra features like personalized playlists based on individual's YouTube history and other usage patterns, YouTube, owned by Alphabet's Google, said.
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 $9.99 a month, YouTube said in a blog post.
YouTube plans to charge $2 more for its premium service, as it includes YouTube Music service along with its original shows. YouTube Premium will be charged at $11.99 for all new members, the company said.
"YouTube Premium includes ad-free, background and offline across all of YouTube, as well as access to all YouTube Originals including Cobra Kai, Step Up: High Water and Youth & Consequences," YouTube said.
For existing YouTube Red members, the current price will continue for YouTube Premium, it said.
YouTube Music will be launched in the United States, Australia, New Zealand, Mexico and South Korea on Tuesday. It will be expanded to some other countries in the following weeks.
Recode earlier reported the launch plan.
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