The Google-owned company will start blocking videos "in a matter of days" to ensure that all content on the new platform is governed by its new contractual terms, said Robert Kyncl, YouTube's head of content and business operations.
Google's decision to press ahead without some of the best-known artists shows its determination to enter the fast-growing market for music subscription services. Amazon last week launched its own service as part of its Prime subscription bundle, while Apple last month acquired Beats Music through its $3bn purchase of headphone maker Beats Electronics.
Record labels representing 95 per cent of the music industry have signed up to the new terms, Mr Kyncl said. The remainder, which are asking European regulators to examine whether Google is abusing a dominant market position, will be blocked from the platform.