Google Online Digital Music Beta Service:Google I/O Developers Conference

Google had big plans for its new digital music service. It wanted an online store to compete with iTunes and Amazon, as well as a “smart locker” storage system in which the company would stream music to its millions of users from a gigantic central jukebox.
But the service that the company unveiled on Tuesday, called Music Beta by Google, fell short of those ambitions. There is no store, the streaming function comes with restrictions, and, like Amazon’s Cloud Drive service announced in March, using it requires a long upload process.
What came between Google and its ambitions was an obstacle familiar to many digital music start-ups: despite months of negotiations, the company could not obtain licenses from the major record companies.
In interviews, Google executives put the blame squarely on the labels. “Generally there were demands on the business side that we think were unreasonable and don’t enable us to have a sustainable, scalable music business,” said Zahavah Levine, director of content partnerships for Google’s Android unit and the lead negotiator with the labels.
Music Beta was introduced on Tuesday at Google I/O, a developers’ conference in San Francisco.