Published reports say that Google has already inked deals with Sony, Universal and Warner and will connect its streaming music service to the Google Play Store. While earlier speculation had the service being offered for free to listeners and supported by mobile ads, the New York Times says that it will be offered on a subscription basis. Apple's rumored iMusic is expected to be free with Apple sharing mobile ad revenue with the record labels. The Times says that the Google streaming music service will be priced in the same range as other paid music apps like Spotify, which means a price of about $10 monthly. Those in the know about Google's plan say that there will not be a free tier for Google's streaming music service.
There is also speculation that Google's streaming video site YouTube will also offer a streaming music channel as part of its recent offering of paid subscription channels. Separate negotiations with the record labels have been taking place, according to sources.
source: NYTimes via SlashGear