Tuesday, February 26, 2013

Report: Google Subscription Music Service Coming

Google Inc. , developer of the Android mobile-phone platform, plans to start a subscription music-streaming service to challenge Spotify Ltd., said two people with knowledge of the situation.

According to Bloomberg Business Week, negotiations are under way with major record labels to license their music, said the people, who sought anonymity because the talks are confidential. Google, which also owns the YouTube video website, is also discussing renewing deals that cover the use of songs in videos made by consumers, they said.

The worldwide service is targeted for a third quarter start, said one of the people. The effort would strengthen Google’s ties to consumers through its Android software, the most popular operating system in smartphones, as consumers access more music and videos on the go. Spotify lists 5 million paying subscribers and 20 million users of its ad-supported service in 17 countries.

Apple, maker of the iPhone, is also planning a music service that would challenge Spotify in streaming and Pandora Media Inc. in Web-based radio, people with knowledge of the situation said in September.

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