We have been hearing rumors since last year that Google is creating a YouTube on-demand music streaming service. Its already widely used for watching music videos and listening to tracks, all videos on YouTube are free, albeit ad-supported. Apparently Google has been trying to figure out which premium features would people want to pay for. Initially expected to be launched late last year, it looks like the service might have been delayed until the second quarter or beyond.

Given the fact that for Google Play Music All Access it had to get major record labels on board, Google already has necessary licenses to launch an on-demand service to rival Spotify or Rhapsody. Billboard reports that the company has delayed the service due to the desire to “get it right,” citing an executive briefed on YouTube’s plans. Apparently Google doesn’t want to launch it as a beta product at first, like it has done so with many products in the past. It wants to make it compelling from the get go.

The report also cites a senior label executive who says that the company feels there is going to be too much scrutiny of this product, so they need to get it right from the start. One reason for the delay is claimed to be Google’s aim to create an elegant and intuitive design, which would certainly play a major role in attracting prospective subscribers.

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