Keep in mind that Google is in a forced "quiet" period pending the public offering of Google stock. That is why you may not have heard too much about the recent purchase of Picasa by Google.
If you don't know anything about Picasa, just think management and manipulation of digital photographs.
Immediate speculation raised the idea Google would go beyond radio and TV clips and enter the online-music business, selling downloads of music files. "You can't ignore it. There is tons of money to be made off of music," Danny Sullivan, editor of searchenginewatch.com, told the Post. --Seattle Times
I don't know about sales of digital music, but searching and AdSense ads going across the digital spectrum is something I can see Google getting more heavily into.
In the meanwhile, Picasa is a good product and is available in a free download. Go HERE and try it out for yourself.