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YouTube announces $9.99 ad-free subscriptions

New York - YouTube on Wednesday announced a new paid-subscription service that would eliminate advertisements as the video service behemoth looks to better tap its vast commercial potential.

YouTube, which is owned by search engine giant Google and claims more than one billion users worldwide, said that subscribers would enjoy commercial-free access for $9.99 a month starting on October 28 and initially only in the US.

Amid the rapid growth of music streaming platforms such as Spotify and Apple Music, the company also announced a new YouTube Music app that will offer artists' video catalogues and be linked with the parent company's Google Play service.

The company called the new subscription tier YouTube Red, but said that the advertisement-backed service would remain available.

"YouTube Red marks an evolution in our desire to give fans more choice and features that they love and a much better experience," Robert Kyncl, YouTube's chief business officer, told a launch event in Los Angeles that was broadcast to its New York office.

YouTube Red will also let subscribers save videos to watch later on their computers or smartphones, even when they lack internet connections.

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