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Busy news day today across the tech industry. Some of the biggest stories catching our attention … 

Facebook plans to launch a music service next month in partnership with existing services Spotify, MOG and Rdio, reports Mashable, citing two anonymous sources. Seattle-based Rhapsody has so far fended off Spotify’s U.S. launch, but Facebook brings hundreds of millions of users to the table, potentially changing the game — or maybe we should say, changing the tune.

Another unreleased iPhone, another San Francisco bar, another missing device — possibly an iPhone 5 prototype this time. Incredible. CNet News.com has the scoop. Business Insider is skeptical of the story.

The Netflix price hike takes effect tomorrow, and Redbox hopes to see an influx of customers as a result. The unit of Bellevue-based Coinstar, which rents DVDs for $1 a day from automated kiosks, has more than doubled its number of kiosks to 33,300 in the past year, the Associated Press reports.

Google is rolling out an HTML5 web app for offline Gmail usage today, with similar features for Google Calendar and Google Docs coming soon. It’s part of an ongoing trend toward web applications adopting the capabilities of traditional desktop software.

It was another big year for PAX, the Penny Arcade Expo, with an estimated 70,000 gaming fanatics crowding into the Seattle convention center and environs for the gigantic festival. Check out all our dispatches from the show.

Also of note: As reported earlier on GeekWire, Amazon is now expected to release a 7-inch tablet in October, followed by a 10.1-inch tablet early next year, and AT&T and Deutsche Telekom are scrambling after the DOJ moved to block AT&T’s $39 billion bid for T-Mobile USA.

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