Google Play Music All Access offers users the ability to listen to
millions of tracks in addition to the ones they already own. The firm
described it as "radio without rules".
The facility is set to compete with Spotify, Xbox Music, Rdio, Pandora and other similar products.
However, unlike several of its rivals there is no free-to-use option beyond an initial 30-day trial period.
Instead users face a $9.99 (£5.60) monthly charge to access a
library containing millions of songs via an Android device or web
browser. Early adopters are being offered a discounted rate of
$7.99-a-month.
Pricing and availability outside of the US have not yet been announced.
The news came at the firm's I/O developers conference in San
Francisco. Investors appeared to welcome the move sending Google's
shares above $900 for the first time.
Streaming music
Music All Access allows users to manually add songs to a
playlist or allow a feature called Explore to offer them
recommendations. Playlists can also include songs which the user owns
which would otherwise not be available.
One industry watcher suggested Google was wise not to offer an advert-supported free-to-listen option.
"One of the things that has really slowed Spotify down is its
freemium tier," said Alice Enders, a music industry expert at
consultancy Enders Analysis.