Get Ready for Google’s Spotify Competitor

by Christopher Freeburn | May 15, 2013 11:13 am

google building 630 300x225 Get Ready for Google's Spotify Competitor[1]After securing agreements with major record labels, Google (NASDAQ:GOOG[2]) will unveil its new streaming radio service this week[3].

Unnamed inside sources tell TheVerge that the Internet search giant has negotiated licensing fee agreements with Sony‘s (NYSE:SNE[4]) Music Entertainment division and Universal Music Group. The company is expected to announce the service at its Google I/O conference on Wednesday.

Google had already signed licensing deals with Warner Music Group.

The subscription service will compete with existing online radio services like Spotify, Rdio and Pandora (NYSE:P[5]). Google will sell subscriptions through its Google Play Android app store. It is planning a separate subscription service for its YouTube website.

Pricing for Google’s service hasn’t been indicated.

Google appears to have beaten rival Apple (NASDAQ:AAPL[6]) to the Internet radio punch. The iPad-maker has been long-rumored to be working on an iRadio service of its own, but has reportedly failed to obtain licensing deals with all the major record labels[7].

Shares of Google rose more than 2% in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/04/google-building-630.jpg
  2. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  3. unveil its new streaming radio service this week: http://www.theverge.com/2013/5/14/4331110/google-lands-universal-music-sony-for-spotify-competitor
  4. SNE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNE
  5. P: http://studio-5.financialcontent.com/investplace/quote?Symbol=P
  6. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  7. reportedly failed to obtain licensing deals with all the major record labels: http://investorplace.com/2013/05/friday-apple-rumors-no-itunes-touchscreen-app-for-windows-8/

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