YouTube is reportedly in the process of creating what Billboard calls a “premium on-demand music service” set to launch later this year. This offering would be mobile-focused and give users the option of listening for free or paying to have unlimited access to the service’s full catalog of tracks. Here’s what Billboard is saying: both of the free and paid versions allow unlimited access to the music on YouTube, but the difference is whether or not you get ads. It’s also said that if YouTube goes the route of a premium service, it might give the service more flexibility in how it packages the music and potentially help with any licensing fees. Could this be a chance to compete against the likes of Vevo? Interestingly, the music service, which is a creation by Universal Music Group, Sony Music Entertainment, Abu Dhabi Media, and … Google, cross-posts content to YouTube that features ads at the beginning of the music videos.