According to recent rumors, Google plans to launch with its own music service without label licences.
A recent report by The Music Void has suggested the negotiation between record companies and Google had become so bitter that the California based search giant decided to follow the footsteps of Amazon by offering its own music service without licenses.
The report singled out the Warner Music Group as the most “frustrating” element among the record labels that took part in the negotiation process.
If the report is to be believed, it seems Michael Nash, the executive vice president of digital strategy, Warner Music Group was very much inclined towards forming a cloud based strategy, and he reportedly wanted Google to charge a 30 USD subscription fee per year from its users for visiting the cloud (http://www.pcmag.com/article2/0,2817,2383539,00.asp (opens in new tab)).
Apparently Google did not agree with this strategy by Nash as they wanted to make the first 500 tracks free for all users, hence pushing the negotiation process into an entirely bitter level.
Amazon had chosen to ignore music labels when it launched its own cloud based music streaming service. The company had said that there was no need to take additional licenses for cloud streaming.