Google has signed licensing deals with Universal Music
Group and Sony Music Entertainment to release a subscription music service that
Would compete with fast-growing startup Spotify, according to a report on
Tuesday in technology blog.
Google is planning to launch the new service as early
as Wednesday at Google I/O, the company's annual conference for software
Developers. The subscription feature will be connected to Play, Google's online
Media hub, complementing its download store and "locker" feature,
Which lets people store their digital entertainment collections online,
According to these people, who spoke on the situation of anonymity before Google's
Official declaration.
Google already has an existing music service, which it
Launched in 2011 and is part of its Google Play digital-media store for the devices
Powered by its Android operating system. The obtainable music service only lets
People buy individual songs or albums, while the new service is different
Because of its unlimited access to libraries of songs and for the
Paid-subscription model versus a la carte purchase.
Despite internal financial projections in 2011 that
Revenue from the music-buying service would reach more than $2 billion by this
Year, according to legal documents unearthed last year, some analysts say the
Actual revenue is only a small fraction of that.
Google is said to have licensing deals for the service
With the three major record labels: the Universal Music Group, Sony Music
Entertainment and the Warner Music Group. Representatives of those labels
Declined to comment.
Making matters more problematically, the service to be
Unveiled this week is one of two parallel music services being prepared by
Separate branches of Google. YouTube, which last week introduced a few dozen
Paid video channels, is also said to be developing a music service. The details
Of YouTube's service are unclear, but consultation is said to be continuing
With music companies.
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