Google may roll out its own online music streaming service for YouTube later this year, according to a report by Fortune.

The report states that, two major music companies have already supported the YouTube music service and would provide music streaming service in two models; free model which allows users to listen to all the music but with ads popping up and one with subscription fee-based which removes ads for uninterrupted listening experience.

"While we don't comment on rumor or speculation, there are some content creators that think they would benefit from a subscription revenue stream in addition to ads, so we're looking at that," a YouTube reprehensive told CNET.

YouTube is the most commonly used medium for watching videos online. Over 64 percent of youngsters prefer YouTube for listening music videos compared to any other online streaming services.

With the launch of subscription based music streaming service, Google and YouTube are entering a flooded market where major online streaming services such as Spotify, Rdio, Muve Music, Soundcloud and Pandora are dominating the online music market.

Spotify is the leading music streaming service with 5 million paid subscribers globally and over 1 million in the United States, whereas the Muve Music leads the U.S. market with over 1.4 million subscribers.  

But considering more than 800 million visits each month on YouTube, that number might be sufficient to get users for its new music service. 

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