It will work on tablet devices and smartphones running Google's Android operating system as well as Google-related websites.
As this was announced by Google, Motorola Mobility chief executive Sanjay Jha let slip at Mobile World Congress in Barcelona that the search engine giant was close to launching its own music service as part of the imminent update to Android.
Motorola is expected to be one of the first companies to ship devices (the Xoom) running the new version of Android, known as Honeycomb, which is being tailored specifically for tablet devices as well as smartphones.
This move by Google comes just a day after Apple introduced new in-app subscription terms for content owners offering products on its App Store. Apple will take a 30% cut of all subscriptions delivered through the App Store but it will not take a cut of subscriptions with apps on its store where the billing relationship is direct with the service provider.
Apple's billing model has already been attacked by Rhapsody president Jon Irwin as “economically unsustainable”, claiming no subscription services have the margin to be able to hand over a 30% commission to Apple. Already rumours are circulating that this is a strategic play by Apple to blow services like Rhapsody, Rdio, MOG and Spotify out of the water ahead of its own long-rumoured cloud streaming/subscription offering within iTunes.