Google is set to continue on its march towards global domination of just about any space it feels like with news that the search giant is preparing a music service called Google Audio

Google is said to be in negotiations with the big music labels, although it’s not clear whether the service will be a streaming site (such as Last.fm or Grooveshark) or a store along the lines of iTunes, reported the Washington Post.

The entry into music isn’t a first for Google, with the company already offering a free ad supported music service in China. That site has the backing on the big four, so the relationship is already in place for a push into the United States.

The other unknown aspect is whether Google will be approaching the music service as it has with books: copy them all then offer the public domain items free of charge. The idea that Google might archive the world’s music is divine for a music lover, however the music industry may not be overly amused by the idea.

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Hitwise actually predicted this week’s launch of Lively, the virtual chat world introduced Tuesday, and also predicted the Google Health service launched before it in May. It’s no magic trick, though: Analysts there started looking at data of Google’s clickstream traffic. That lets them see what types of sites are getting the most traffic from Google — and thus have highest interest to Google’s users.

“Our thinking was that Google might want to fill natural gaps in its portfolio of offerings based on the interests of its users,” Hitwise UK VP of Research Heather Hopkins explains. “We looked at which categories are receiving the most traffic from Google in which Google does not have its own property.”

Back in January, health and entertainment topped the list. The newest analysis shows cars and tunes as the most likely next targets, leading Hitwise to put its money on Google Auto and Google Music for the future.

Hitwise has sure had decent odds thus far. Might be time to place a friendly office bet and see what happens.

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