YouTube 'planning subscription video-on-demand service'

YouTube is reportedly planning to launch a subscription-based video-on-demand service, that will allow users to watch unlimited videos without ads for a set monthly fee.

The new service is said to be modelled on YouTube Music Key, which launched in beta in November 2014, and allows users to watch and listen to music videos without ads for £9.99 a month.

Music Key also offers additional features like the ability to compile playlists, download music videos for playing offline, and discover music from artists based on their musical tastes.

According to a report in Variety magazine, an executive at one of YouTube's content creation partners was approached about getting on board with the new subscription service late last year.

However, the partner was reportedly warned that if it didn’t agree to the terms of the subscription service, it would be excluded from any future ad revenue.

This is the same tactic that YouTube reportedly used to deal with independent music companies that refused to get onboard with Music Key.