Report claims the service will offer unlimited access to music videos advert free as well as the capacity to store videos offline

YouTube is preparing to launch a premium on-demand music service later this year, according to reports.

The online video service will have a free component and a premium tier that offers unlimited access to music videos free of adverts as well as the ability to store videos for use when not online, Billboard reports. The platform is also believed to be designed with mobile devices in mind.

Billboard reports that, “The free tier is likely to be unlimited, on-demand access to full tracks on all platforms, including mobile, said several people who have been briefed on the proposed service. In that sense, the paid tier is more of a “soft sell” as YouTube’s primary goal is to continue to amass ears and eyes to its mobile platform to sell ads.”

Explaining the virtues of a monetised service, the report continues: “But having a paid tier, with all the required licences for a premium on-demand product, gives YouTube more flexibility in packaging and selling music with fewer restrictions on what it can do with the music, multiple sources pointed out. In addition, there are strategic reasons for developing a premium music video service that could be paired up with other Google products in the future, including Google Glass.”

“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,” YouTube told the publication in a statement. “However, we have nothing to announce at this time.”

It is suggested that the announcement on YouTube’s music service could be announced around the upcoming YouTube Music Awards. The inaugural awards will take place November 3 at Pier 36 in New York and will be live streamed around the world on the video sharing site.

Jason Schwartzman, known for roles in Rushmore and The Darjeeling Limited, will host while Where The Wild Things Are director Spike Jonze will act as creative director for the show. The 90-minute ceremony will see six awards handed out as well as the live performances with all winners voted for by YouTube users.

Arcade Fire, Eminem, Lady Gaga, MIA, Tyler, The Creator and Earl Sweatshirt have been confirmed as performers at the ceremony.