Bloomberg has reported that according to sources close to the matter, Google Inc. is developing a subscription music-streaming service, similar to that of Spotify, that could become available in Q3 of 2013.

This rumoured development was first published by the Wall Street Journal a few days ago.

Google is currently in negotiations with a number of record labels to allow the search engine license to use their music in the service. According to the report Google is also “discussing renewing deals that cover the use of songs in videos made by consumers” on YouTube.

There have also been reports that Apple is in talks with record labels to start a custom radio service similar to Pandora – an automated music recommendation service.