Rumors have been circulating about a Google Music offering for quite a while now, and just today I received more fuel for that fire by someone who wishes to be called "Muze".
Muze says that Google is working on a product named "Google Music" to rival "Yahoo Music". Audio files are said to be downloadable (for a price) and there will also be videos, previews, etc.
On a related note, David Utter from WebProNews filled me in the other day that http://www.google.com/musicsearch simply gives us an error now instead of the once search box. Something is definitely happening with music -- I will be watching closely for any changes in this space.