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YOUTUBE are to offer a music streaming service to rival Spotify with Youtube Music Key, which is launching this week.

The service will offer a mixture of audio and video streams including full albums signed to all three major labels and hundreds of independent labels.

It will be available in both free and paid for versions, with the free version funded through adverts; alike that of Spotify’s free package.

The service will cost £9.99 a month. An earlybird package will offer the first six months for free, then a discounted rate of £7.99 a month.

Youtube Music Key will sit alongside parent company Google’s existing service Google Play Music All Access. Anyone currently paying for this service will receive the new Youtube service and vice-versa.

This new service will be the biggest rival for Spotify. Spofity this week announced it has 50 million active users and 12.5 million subscribers.