Google will announce a new, subscription-based music service tomorrow at Google I/O, the company's annual developer conference. Sources close to the matter told The Verge that Google signed separate licensing deals with Universal Music Group and Sony Music Entertainment. The company would use those deals to add music subscription services to both YouTube and Google Play.
This effort would take on subscription-based music streaming services like Spotify, Rdio, and even Pandora. For years, the rumor mill has said that Apple wants to create a subscription-based music service, so Google's announcement could be a move to beat Cupertino to the punch. As the New York Times wrote, “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 in the cloud.”
The Times' sources also said there would be no free tier to this supposed subscription service, a notable distinction from some competing streaming companies. The paper speculated that subscriptions might begin at $10 per month.
With Universal, Sony, and Warner Music Group already on board (the last coming via an earlier deal), Google is rumored to be looking at incorporating subscriptions into YouTube somehow as well. Less is known about how that would work, however, and the New York Times said negotiations will continue between Google and the music companies on this front.
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