Official YouTube Blog:

But YouTube was made for video, not just music. On Tuesday, May 22, we’ll be changing that by introducing YouTube Music, a new music streaming service made for music with the magic of YouTube: making the world of music easier to explore and more personalized than ever. The days of jumping back and forth between multiple music apps and YouTube are over. Whether you want to listen, watch or discover, it’s all here. YouTube Music is a new music streaming service made for music: official songs, albums, thousands of playlists and artist radio plus YouTube’s tremendous catalog of remixes, live performances, covers and music videos that you can’t find anywhere else - all simply organized and personalized. For the first time, all the ways music moves you can be found in one place.
And also this post over here:
Since launching YouTube Red in 2015, we’ve been thrilled with how people are enjoying the service, whether it’s downloading videos for a flight, binging the first season of Cobra Kai, or listening to the wide breadth of ad-free music. As part of ongoing enhancements to the member experience, today we’re excited to announce that YouTube Red is becoming YouTube Premium!
OK, so if I understand this correctly, we now have the following breakdown:
  • YouTube - Still exists as a video service, still free and ad-supported.
  • Google Play Music - The store is still a thing, as is the streaming service...for now...
  • YouTube Music - Like Spotify's Free tier, allows free access to music, but is ad-supported.
  • YouTube Music Premium - $9.99 a month, allows music access, no ads, but does not allow for access to...
  • YouTube Premium - $11.99 a month, allows access to what used to be "YouTube Red" originals, ad-free experience, etc.
This is as confusing as to which messaging service you should be using on Android. Jesus.

Shame, as some of the ideas - like the location and date/time based playlist suggestions - are really clever.

Best of luck, Google.