14 May 2011

Google To Unveil Online Music Service

Google Inc. is preparing as early as Tuesday to unveil a new online music service similar to a service recently launched by Amazon.com Inc., according to people familiar with the matter, a move that escalates the battle to create the next generation of Internet businesses for storing and listening to music.

Google, like Amazon, hasn't secured licenses from the four major recorded-music companies, according to these people, and is likely to include a system that functions much like a remote hard drive.

Users of the service are expected to be able to listen to songs they have uploaded to the service in a so-called streaming mode but won't be able to download the files themselves. That limit appears to be a bid by Google to hinder the service from being used to spread pirated music.

A Google spokeswoman had no comment.

Google is likely to announce the service Tuesday at its annual Google I/O developers conference in San Francisco, these people said. Initially, the service is to operate in a testing mode, and not be available to the public at large.

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