YouTube is close to launching a music-video subscription service to compete with sites like Spotify and Rdio.

Billboard is reporting that YouTube will offer both a paid level and free, much like other services. YouTube is focusing the service for on-the-go listening and so the premium level would allow users to save music for offline listening.

The premium level isn't likely YouTube's goal as the site would prefer to sell more ads than anything else. The free level would likely give subscribers similar access to music as the premium, users would just have to deal with ads. Sources are saying that having a premium level gives the video site more options and could potentially be used with Google products.

According to a source who talked to USA Today the service would likely launch either later this year or early 2014 and cost $10 a month for the premium level.

YouTube's revenue primarily consists of ads shown before videos, though money generated is split with others involved in the video. The premium level would allow YouTube to potentially increase its revenue.

Billboard notes that at the moment YouTube isn't commenting. "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," the site said in a statement.

YouTube added, "However, we have nothing to announce at this time."