YouTube is set to launch music subscription service by Dec. 2013. With this move it will compete with players like Rdio and Spotify and other digital platforms.

The world of digital music will become all the more competitive after Internet giant - YouTube will arrive and compete with established brands.

According to Variety, YouTube will offer both free and premium services to its customers. The premium service will have commercial-free listening which also offered by Spotify. Also, services offline listening and browser and mobile integration, currently offered by Pandora.

The free service of YouTube music subscription will, reportedly, offer on-demand, unlimited songs. Even through free service, YouTube can make money, as they have already started monetizing the videos via ads. The most-subscribed channels and most-viewed videos are related to music making YouTube the largest digital music provider in the world.

YouTube have not made any official announcements about the possible music subscription release.

"We're always working on new and better ways for people to enjoy YouTube content across all screens, and on giving partners more opportunities to reach their fans. However, we have nothing to announce at this time," a spokesperson said.

YouTube's grand reach will also make the premium service good for music companies as they could generate recurring revenues from the same.

It is also being reported that YouTube subscription service will integrate with Google Play Music All Access, a subsidiary of Google Inc. Google Play Music All Access will provide subscribers unlimited access to the catalog, the ability to make personalised radio stations and recommendations based on user's liking.

YouTube Music Awards, a high-profile event, to be held Nov. 3 in New York City is a sign that YouTube is on to something big. The event will feature artists like Lady Gaga, Eminem, M.I.A. and several others.

Nominees for YouTube Music Awards 2013.