Reuters found out that we won't see a music service from Google soon. "We are not going to be selling music," said Chris Sacca, head of business development at Google. "Sacca says the big opportunity in digital music is in developing the ecosystem: one that allows consumers to move content from the home to the car and between devices with ease. He noted the need for open source systems and protocols to drive collaboration among companies." It will take some time until companies realize the power of their devices lies in their interoperability. Google used an open protocol for Google Talk and this should be the way to go in the future.
"We're already in the music business, because we're the complement to the offline life," he said. "After people hear the name 'Gnarls Barkley' their next move is to go and check on Google for it."
Google realized it's a tough business to compete with iTunes and other music stores and Google Video Store is already a problem. But I don't think this is a closed chapter.