Google music service has iTunes in sight

Reuters reported that Google's VP of engineering Andy Rubin had has been conducting talks with record labels. Record insiders are excited about the possibility of Apple and Google challenging each other on the digital music front.

According to the publication's sources, Google's music service is set to launch "before Christmas". However, Google has yet to sign a deal with record labels yet.

Music is the latest battleground for Google as Apple has held a 7 year control with iTunes, which holds 70 percent of all U.S. digital music sales. But with Google claiming to activate 200,000 devices a day, they might already have a foothold in the digital music market.

"Finally here's an entity with the reach, resources and wherewithal to take on iTunes as a formidable competitor by tying it into search and Android mobile platform. What you'll have is a very powerful player in the market that's good for the music business," said an anonymous record label executive.