The company also announced that Android Market will now offer full-length movies starting at $1.99 a piece, but more may be charged for popular films.
Google's music, and to a lesser extent, movie, announcements may also fuel speculation that the company is focused on building a to compete against Facebook.
Industry analysts have long speculated that Google is developing a social network, and that music, gaming and movies could play a big role in it.
Google's music service isn't the social platform that the industry has been anticipating. However, it could be a building block for one.
Ezra Gottheil, an analyst with Technology Business Research, said music could be a tough pillar on which to build a social network. Even Apple, having a strong base with its iTunes store, hasn't made huge waves with Ping, its music-based social network.