
YouTube Music will serve ads on the free version and also offer official songs, albums, playlists, artist-based radio and YouTube’s library of videos. On the other hand, YouTube Music Premium is the ad-free version that lets you to listen to tunes in the background, and also download them. It costs $9.99 a month and can be accessed via an app or desktop browser.

YouTube Music Premium is replacing the Google Play Music app and its subscribers will be able to play their purchased music, uploads and playlists that were part of their Google Play Music subscription at no extra charge. In addition, both the free and premium versions of YouTube Music will now list songs based on your current location, and you can also search for a specific songs in vague terms.
It is also important to note that YouTube Red—a paid subscription streaming service that also plays in background and downloads millions of videos—will now become YouTube Premium starting from May 22. Meanwhile, the price for this service is $11.99 monthly, and it includes YouTube Premium Music.
Youtube Music (Premius/Free) will start rolling out to U.S., Australia, New Zealand, Mexico and South Korea on Tuesday, and other countries in the coming weeks.
source: YouTube
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