Google Is Losing Its Fight With The Music Labels On A Streaming Service

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Google’s music service is being derailed by music labels who aren’t comfortable with its plan to offer music in a web-based “locker,” the New York Post reports.Google wants to give users a “digital locker” where they would keep all of their music. From this locker they could stream music to any device they own — their computer, mobile phone, or whatever Google cooks up.

The music industry is worried the digital locker will be filled with pirated music as well as legitimate files that users have paid for. The labels argue that streaming music from this digital locker constitutes a new use of the music, therefore it should be paid again, says Peter Kafka of All Things D.

Google wanted to have its music service up and running for the fourth quarter. It would be a nice selling point for Android as it battles Apple and Microsoft in the smartphone wars. But, thanks to negotiations with the labels it hasn’t happened yet and it might not happen until Q1 2011.

The bottom line is music labels want more money and don’t want to provide anymore incentives for people to not buy new music.

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