Digital music exec Wayne Rosso has an inside view on some of the negotiations going on between Google and the major record labels over licensing fees for a cloud-based music service of some kind. And things aren't going well.
Google is frustrated from the grief they seem to be getting from all of the labels, much of which appears to be coming from WMG. Observers say that WMG has staked its future on the cloud and the label’s head of digital, Michael Nash, is said to be convinced that Google should be charging users $30 a year for the cloud. Google, in response, is said to think that is way too much and wants the first 500 tracks stored by users to be free of charge. At this point the negotiations are said to have gone sideways and Google execs are looking at alternative strategies.
-Wayne's World blog, April 11, 2011 via Mashable