Of course, we've heard that one before. But according to CNET's sources, the cloud-based streaming service is being tested now, and has been held up this long because of a little thing called... permission. Yes, they're still sorting out rights with the labels.
The reason it's so tricksy for Google is because they need to gain rights to store the record labels' acts' catalogues on the company's servers, so they can be streamed. They better hurry, though - with competition looming from Apple and Spotify, it's going to be a tough race. [CNET]