Google may be bringing its own version of Pandora or iTunes to users. The Net search giant is reportedly developing a music service called Google Audio, multiple sources have told TechCrunch.

Google has spent the last several weeks getting composition for the launch of the service from major music labels, sources said. The new service will be available in the U.S. as either a download or streaming music service. Currently Google offers users a music search engine that can be accessed by typing the word music in the search box. Songs, however, are not available for download via those searches.

Google is remaining tight-lipped about the project. Asked whether the reports of a new music service were accurate, Google spokesperson Gabriel Stricker said, “We don’t comment on rumor or speculation.”

All Google Touches Turns To Gold

Whatever Google is doing with the rumored music service, whether it is for search-advertising aspirations or to bring music to users, analysts say it will succeed. “The minute you put Google in front of anything, you are guaranteed results,” said Michael McGuire, a Gartner analyst.

While some observers are guessing Google is developing a service that will stream music like Pandora or a money-generating music store such as iTunes, others say the move would not be in line with Google’s core business of search.

“I would find it perplexing whether they were taking upon themselves to license composition from labels and providing downloads,” McGuire said. “The margins are so thin.”

It would manufacture more sense for Google to tap into large aggregators of music who already have an audience.

In China, Google users are hearing the music. In March, after seven months of evaluating, Google launched the Google Music OneBox service found at Google.cn/Music. The service allows users in China to search for digital rights management-free MP3…

[Source] dhiram