I found a very interesting article on Blog Maverick. The blog, in case you did not know, is maintained by Mark Cuban, the owner of the basketball team and a number of companies related to internet (read more on Wikipedia at the link above).
It makes some sense, but I don’t think it’s going to happen, or at least not as it is described. I can hardly believe that the music labels would be happy to give away the music for free. The first billion songs for free is A LOT and would cost them A LOT (Mark says about 575M USD). That would mean a really low price per song and the music labels are already fighting with Apple to raise the 99c per song.
While Google and Apple are friends, I doubt the service would be compatible with the iPod and Google and Microsoft are not so much friends, so I hardly think it’ll be compatible with Zune. What’s left? Something that maybe is not in Mark Cuban’s article, you home-media-center. An all-in-one tiny computer (as big as your VCR) that connects to internet, lets you watch TV shows, listen to music and read news online. Wouldn’t that make more sense for Google?