YouTube Launching New Subscription Service

YouTube is launching a new subscription service to rival the likes of Netflix (Xetra: 552484 - news) and Spotify.

'Red' will offer ad-free videos, unlimited music streaming, new original series and movies from top YouTubers like PewDiePie, Lilly Singh and The Fine Brothers.

It (Other OTC: ITGL - news) will cost $9.99 (£6.50) a month and launches in the US on 28 October.

Chief business officer Robert Kyncl described Red as "the ultimate YouTube experience".

"Today marks a new chapter in us giving fans the choices of what they want," he said.

Unlike Netflix, Red content may be downloaded and watched offline.

Customers will also get YouTube Gaming, a new YouTube Music app and Google Play Music.

And they will be able to have YouTube music playing in the background while using other apps.

YouTube, which is a part of Google, currently gets most of its revenue from ads - and the move could be seen as a response to the rise in ad-blocking software and apps.

Subscription video services are a lucrative market in the US, with people spending $4bn last year, £3.4bn of which went to Netflix.

The nearest rival to Netflix in terms of subscriptions is Amazon Prime Instant Video.