Google’s rumoured music service is allegedly going nowhere because Google’s hit a wall while negotiating with record labels. AllThingsD’s Peter Kafka has sources telling them that talks are “broken” (possibly because Google changed their terms last minute) and that Google is reconsidering plans altogther.
However, Kafka also spoke to record label reps, who think that the process is going along fine and expect to strike a deal soon. He also entertains the possibility that Google will forego music sales, and just launch a streaming locker service that will stream your uploads. [AllThingsD]