(Image courtesy of thegadgetguycolumn)

Perhaps it's a bit of a case of "iTunes 10 Envy"?  Hot off the release of the new version of iTunes, a new rumor out today is that Google is working on negotiating with music labels to try and secure licensing for a music download store as well as a "digital song locker."

Google Vice President of Engineering Andy Rubin, the guy behind Android mobile OS, has been holding meetings with label honchos to try and sell an in-development online music store, according to Reuters.  The hope is that Google can launch the service by Christmas say sources.

Execs are said to be pretty keen on Google trying to compete with iTunes.  The report says that while the labels are "grateful" about what Apple has done for digital music sales,  the labels are also worried about Apple's increased share.  Currently, the iTunes Music Store makes up 70 percent of all digital music sales here in the U.S.

"Finally here's an entity with the reach, resources and wherewithal to take on iTunes as a formidable competitor by tying it into search and Android mobile platform," according to one label exec.  "What you'll have is a very powerful player in the market that's good for the music business."

According to another exec, "we're cautiously optimistic because Google has great scale and reach but doesn't have a track record in selling stuff."

What do you think readers?  Would a little competition between Google and Apple be good for the music industry?  Or not so much?  Feel free to leave comments below!

via AppleInsider

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