Is Google the Next Pandora?

Google (NASDAQ:GOOG) could be right on its way to competing directly with the other audio-streaming services on internet. Some new agreements hint at the power of the company’s new streaming service, and Google has announced that it will launch the service on the first day of its I/O conference.

People with some knowledge of Google’s dealings said that the company unveil its subscription music service at the conference, which is taking place Wednesday in San Francisco, and they were right.

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Google Play Music All Access, announced Wednesday, is Google’s new streaming service that could compete with others like Pandora (NYSE:P). Thanks to licensing deals with Sony’s (NYSE:SNE), Universal’s, and and Time Warner’s (NYSE:TWX) music groups, Google Play Music All Access could start off with the combined strength of the library as well as the strength of the Android operating system.

The service costs $9.99 per month with a 30-day free trial. However, if users sign-up early, they can get a $7.99-per-month rate. It could prove a great source of revenue for Google. So far, it’s not clear whether the application will include space for advertising, but the subscription fee should be a sufficient source of revenue to keep the application profitable for the company.

The service will offer suggests and featured songs, and will keep a constant stream of new music coming to users ears. Apple (NASDAQ:AAPL) has been also looking into getting into the music-streaming game, but now Google has a head-start, and it could be hard for Apple to push into the market with strong competition already present.

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Google may also be extending its subscription music services to YouTube. The site has 800 million unique visitors each month, so there is a big user-base to leverage. Given music’s popularity on YouTube, the service could prove popular on that platform as well.

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