Earlier this year Google announced that it is working on an ad-free streaming video subscription service to capitalize on the popularity of YouTube. To date though, we’ve heard little about what that service will be and how it will differ from OTT TV services like Netflix, Hulu, HBO Now and Dish’s Sling TV.Bloomberg Business revealed new insight into Google’s plans on Monday. According to the Bloomberg article, at this point, 90% of the content will come from YouTube’s current content and its most popular, home grown stars like Jenna Marbles, Bethany Mota, PewDiePie, and Ray William Johnson. Major networks including Fox, NBC and CBS have not been signed. In other words, the ad-free YouTube service will look much like its current product – just without the ads. A tentative launch date has been set for year end, so networks and YouTube star holdouts still have time to get on board.

In a statement about the subscription service, YouTube said, “We are progressing according to plan. We have support from the overwhelming majority of our partners, with well over 90% of YouTube watchtime covered by agreements, and more in the pipeline about to close.”While working on the on-demand streaming video subscription service, YouTube is also working on its Music Key subscription service, now in beta testing. Because music is the most popular type of video viewed on YouTube, it is possible that Music Key will become a part of YouTube’s OTT service. This could be the one feature that would differentiate it from other OTT services.According to Bloomberg, part of the draw for YouTube’s ad-free subscription will be features that allow subscribers to store and watch videos offline and to watch them while other smartphone or tablet apps are running in the background, features not available to users of the free service. And like Netflix, Hulu and Vimeo, YouTube plans to serve as a platform for original shows and series.Insider Take:Will YouTube’s new ad-free service take off? Maybe. Look at these stats:

• YouTube has more than one billion monthly users.
• Every day people watch hundreds of millions of hours of YouTube, generating billions of views.
• 300 hours of video are uploaded to YouTube every minute.
• Half of YouTube views are on mobile devise.
• Mobile revenue on YouTube has doubled year over year.

These stats are certainly impressive, but how will users and streaming video views translate in terms of subscriptions? Surely, some audience members will convert into subscribers, but the trick is how many and what is YouTube’s tipping point to recoup its investment.So far, YouTube is only offering what its users can already get for free, if they’re willing to sit through the occasional ad. It will boil down to unique content and features. YouTube will have to offer something subscribers can’t get already or from another site. Signing major networks may not be a deal breaker, if the content mix is attractive enough.

It looks like original shows on YouTube will be a good selling point, but even more so, Music Key and the new service could be a big hit if combined. As we explained in our November 2015 post about Music Key, YouTube has greater reach than any other online music source, and it is the top site for people age 34 and under to find new music. If YouTube can leverage that popularity by combining Music Key with its new OTT offering, YouTube could have a winner on its hands.