According to a report from The Verge, it seems that in 2016 Google had merged the business development teams from YouTube Music and Play Music. This has been confirmed by a Google spokesperson who said, “Music is very important to Google and we’re evaluating how to bring together our music offerings to deliver the best possible product for our users, music partners and artists. Nothing will change for users today and we’ll provide plenty of notice before any changes are made.”
It is unclear as to what this means moving forwards, but as the spokesperson said, nothing will be changing for users at the moment, meaning that both services and apps will continue to exist side-by-side. However as The Verge notes, combining both apps and services makes sense, especially considering that Google has rivals that offer up less confusing products.
Not to mention there are services like Apple Music where music and music videos exist together, so for Google to create a similar service wouldn’t really be that much of a stretch.