Google is in negotiations with music labels to launch a streaming service this year which will directly compete with Spotify and Deezer.
That's according to the Financial Times, which indicates that the service will take advatage of Google's mobile footprint via its Android OS.
The FT reports that the plan to launch the platform 'reflects the technology company’s ambition to extend its influence into new business areas and diversify away from advertising, which accounts for 95 per cent of its revenues.'
Google is understood to be seeking licences from the four major labels and indie record companies, as well as music publishers.
However, music industry sources have told The Verge that the launch of the service is only likely to arrive in Q3 this year at the earliest.
Google would be the first retail or tech giant to launch a dedicated streaming service, ahead of Apple or Amazon.
The company launched its download hub, Google Play, in October last year.
It arrived in Europe in November, fully licensed by PRS.
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