Google Sick Of Dealing With Labels, May Drop Portions of Music Service

Google is so tired of negotiating with record labels about licensing that they may drop part of their planned Google Music service in frustration. WMG is apparently the worst offender with the label’s head of digital, Michael Nash, reportedly telling Google that they should charge users least $30 a year for a robust cloud music locker.

Google is said to want users to be able to try the service for free with the first 500 tracks stored by users at no charge.  WMG and perhaps others are unwilling to budge. "Google is just about at the end of their rope with the major label licensing process,” according to industry veteran Wayne Russo.

Google's logical move may be to launch a more limited product without licences much as Amazon did recently.  Despite public condemnations, no labels or publishers have challenged Amazon Cloud with litigation.