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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