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IMHO, it a train wreck waiting to happen -- a no starter.
If they were to sell uploaded copyright infringing music they would be liable for criminal copyright infringement and lose safe harbor.
If Youtube removes all of the "user uploads" to be sure there is no infringing music content most of their inventory is gone.
The only way this could work is that the paid subscription service will be limited to "official" uploads of copyright holders -- I would expect the offer to be amended to this before release.
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