Exclusive: Google readies its Spotify competitor with Universal and Sony now on board

Odds are increasing that Google will give us a peek tomorrow during the Google I /O Conference at the company's new subscription music services. Google has now signed licensing deals with Universal Music Group and Sony Music Entertainment for both YouTube and Google Play, music industry sources told The Verge.

Google plans to add separate music subscription services to YouTube and Google Play, the entertainment hub for the Android operating system. Earlier this year, Fortune magazine reported that Google had already struck similar licensing agreements with Warner Music Group, the smallest of the top three record labels. But landing Universal Music and Sony gives Google access to the two largest record companies, homes to such acts as Bob Dylan, Alicia Keys, Lil Wayne, Rihanna, and Jay-Z. Spokespeople from Sony and Universal declined to comment.

If Google rolls out the new services tomorrow at I/O, it would get the jump on Apple, which is also trying to launch a new streaming-music service. According to reports, Google's subscription services would resemble Spotify, and offer on-demand songs that would be streamed to their PCs and mobile devices. In contrast, Apple is working on an online radio service that is said to be more akin to Pandora, the top webcaster.

Google comes to these negotiations as a powerful player in music. While Google Play is still a relatively new service, insiders say YouTube is a juggernaut. The user-generated video site sees more than 800 million unique visitors a month and music videos are among the most popular fare.

Vivendi, Universal Music's parent company reported first quarter earnings today, and said that revenue was up 13 percent compared to the same period a year earlier. Digital music sales have now surpassed physical at Universal, with the split being 54 percent to 46 percent respectively. The addition of Universal's catalog, along with Sony's offerings, for the forthcoming Google product could have a significant impact on competitors Spotify and Rdio.

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I'm kinda surprised they haven't presented that kind of service tbh.

I love spotify so much, it will have to really be a great service for me to leave.
None of this Google Plus business.

Don't see it working out... not only is Spotify already massively popular, but once Apple releases their streaming service, there will be no more market potential.

Isn't Apple going the Pandora route?

Doesn't matter, they'll pay Canada complete dust just like Spotfiy anyways.

I'm not here for Google at all but if Spotify couldn't bring his ass to my country, Google is the way

Yesss

Spotify is not even available in Asia, so it's their loss then. When they finally realize the value of expanding the service to other countries, it will already be too late for them.

i love it so far. it's playin all the ratchet ****.

it's like spotify and pandora in one. it can play a radio for you, or you can just play whatever songs you want.

Spotify is the absolute cat's pajamas though, and with some of the mess that google has been doing lately I don't really see them changing my opinion on that.

Not really, they have to work with all the labels and some labels work differently in certain countries. It might not get to Asia for a very long time.

Except Spotify has radio too.

This will flop especially since it isn't for iOS

Sis use tunnelbear. Spotify's ass can be tricked. It even lets me stream while tunnelbear is off.