Dive Brief: 

• YouTube has unveiled its answer to paid streaming music Music Key—confirming rumors from this spring that the service was coming. 
• Rolling out a pilot version on Monday, Music Key will call on the sites collection of video and music, which is already the biggest online collection of legal music. 
• A free, ad-supported version will also be offered, but advertisers will not be able to target ad specifically to users, meaning that the same ads that stream before videos on traditional YouTube will run. 

Dive Insight: 

Google-owned YouTube has some stiff competition with existing music streaming services like Spotify and especially with Apple which is ramping up its iTunes radio. YouTube does have the advantage of pulling from its video library, something no other streaming service has. Spotify currently has 12.5 million subscribers, which is barely 1% of YouTube's audience. So if Music Key plays its cards right, it could easily outpace all other streaming services.