Google Is behind Its Fight With The Music Labels

Google's music service is being derailed by music labels that aren't comfortable with its plan to offer music in a web-based "locker," the New York Post reports.

Google wants to provide users a "digital locker" where they would keep all of their music. From this locker they could watercourse 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 lawful files that users have paid for. The labels dispute 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 advertising point for Android as it battles Apple and Microsoft in the smartphone wars. But, thanks to talks 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 give anymore incentives for people to not buy new music.