An unnamed source close to Google's music plans claim that the internet search giant was close to purchasing Rhapsody or Spotify, however talks came to an abrupt end as various groups within Google could not reach an agreement. Now Google is said to have delayed its plans for a subscription-based music service and instead will build a music "locker" that will allow users to stream music to their Internet connected devices, similar to mSpot.
So what happened? Google reportedly doesn't function like Apple where Steve Jobs rules an entire body of hired help. Instead, Google is comprised of various independent teams to better respond to market conditions. However sometimes this "collective" structure can cause problems as seen with the subscription-based music service. Sometimes getting things done as a whole can be a real pain, sources claim.
According to reports, at least three groups involved with Google Music were fighting for control of the service and couldn't agree on how to proceed. The company is reportedly now poised and ready to pay record labels "tens of millions of dollars" so that they'll jump on board to support the new cloud-based "locker" service.
Google also reportedly hired on music technology lawyer Elizabeth Moody back in July to take the reigns of the project. Moody is supposedly in close negotiations with the four big record labels, however Google as a company has not started official negotiations with the actual music publishers-- they hold a different set of rights.
Despite the move from subscription-based to cloud storage, Google Music is still slated to launch in 2011.