Google Said to Add Sony to New Music Service

By Andy Fixmer and Brian Womack - Nov 16, 2011 7:38 AM GMT+0700

Google Inc. (GOOG) reached an agreement to offer songs from Sony Corp. (6758) for a new music service being announced tomorrow, a person with knowledge of the situation said, leaving Warner Music Group as the lone holdout.

Vivendi SA (VIV)’s Universal Music Group and EMI Group, the other two major record labels, have already signed on, said two people, who weren’t authorized to speak publicly.

Google plans to open a music-download store that allows copies of songs to be stored online and played from multiple devices, three people said yesterday. Songs will cost 99 cents to $1.29, though Google may offer discounts, said one person.

Warner Music Group hasn’t agreed because of pricing and piracy concerns, two people have said.

Google, the owner of the biggest Internet search engine, has expanded into music, television and movies as it seeks to bolster sales of devices running its Android mobile software.

The company, based in Mountain View, California, sent out invitations last week for a music event tomorrow in Los Angeles. Google also seeks rights for its Google+ social-network users to share music with each other, the people said. The moves put it in competition with Apple Inc. (AAPL)’s iTunes online store.

Randall Sarafa, a spokesman for Google, declined to comment.

Google rose 0.6 percent to $616.56 at the close today in New York trading. The shares have climbed 3.8 percent this year.

The Wall Street Journal reported Google’s deal with Sony earlier.

To contact the reporters on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net; Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net