Not content with being in the search engine, browser, advertising and operating systems business, it looks like the bean bag-loving people at Google have their hungry eyes set on the music industry. A new report claims the internet giant plans to launch its own music download service in the coming months.

According to the rumor-mongers at the Wall Street Journal:

Google’s proposals are still vague, say these people, and it’s unclear whether it has struck any deals with record labels so far. But Google has been stepping up conversations about offering new music services tied to phones running its Android operating system along with the broader Web, said people who have been briefed on the talks. The launch of Google’s download music store is still months away, these people said.

Of course, a Google music store would put the company in direct competition with Apple’s iTunes store, currently the market leader.

The two companies recently went head-to-head when Google launched its Android operating systems for mobile phones. And as recently as the first quarter of 2010, Android phones had moved ahead of Apple iOS.

The Journal says the first phase of Google’s entry into the music biz will be a web-based store tied directly to its search engine. So when you go searching for Blue Oyster Cult (and you know you will), you’ll see you can download Agents of Fortune right then and there.

The ultimate goal, according to the WSJ’s sources, is “a cloud-based service [that] would enable subscribers to stream music directly from the Internet to their mobile phones, so that users wouldn’t need to store music files on their devices.”

Google Plans Music Service Tied to Search Engine [WSJ]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.