It is well known that Google has been trying to get into the Cloud Music business for some time now. They have not been able to come to terms with record labels, although technically they have all the pieces in place for the service. We recently reported that Apple completed work on their online music service which should be launching soon.
Google is eager to get their product out as they had a seemingly locked-in first mover advantage with their demo at Google I/O 2010. Fast forward to 2011 and no product has been launched. Iin a move to get the product out as soon as possible and complete deals with record labels, Google is in talks again to purchase Spotify. Spotify is a European music streaming service that is eager to come to the US market.
Spotify, for the record, denied they were having any talks with Google about being acquired or making Google's Cloud Music a reality. Google declined to comment.
Google's Other Options
Another option discussed over at CNET is for Google to purchase Pandora, the web's #1 radio service. Although Pandora does not currently offer a Cloud-based storage system but instead streams content, their deals with the major labels could prove an important asset in negotiations.
Google has a long history of making acquisition's to bolster their position in markets they have struggled in. When Google purchased YouTube back in 2006, they already had 80 million registered users much like the current state of Pandora.
Google is serious about bringing the Cloud Music Service to market and in the near future. If they can't come to a deal with record labels than they may end up buying their way into the market. It is going to be interesting to see how it plays out, stay tuned for more information.