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Google planning music store to take on Apple

post #1 of 90
Thread Starter 
Google is negotiating with music labels to secure licensing for a music download store and "digital song locker" that would challenge Apple's digital music reign, a new report claims.

According to Reuters, Google Vice President of Engineering Andy Rubin, the brainchild behind the Android mobile OS, has been meeting with label executives to pitch an in-development online music store. Rubin hopes to launch the service by Christmas, sources said.

Industry executives are very enthusiastic about Google entering the market to compete with iTunes. Although the labels are "grateful" to Apple for what the company has done for digital music sales, Apple's increased dominance also has music labels worried. The iTunes Music Store currently accounts for 70 percent of all digital music sales in the U.S.

"Finally here's an entity with the reach, resources and wherewithal to take on iTunes as a formidable competitor by tying it into search and Android mobile platform," said one label executive. "What you'll have is a very powerful player in the market that's good for the music business."

In the past, music labels have clashed with Apple CEO Steve Jobs over pricing and formatting. Executives hope that competing digital music retailers will provide labels with better leverage when negotiating with Jobs.

While Google's size and abundance of resources will certainly give momentum to a music launch, especially if it takes advantage of Android's market penetration, bigger hasn't always meant better. Amazon has managed to capture just 12 percent market share with its three-year-old MP3 store, despite being the biggest online retailer in the U.S.

"We're cautiously optimistic because Google has great scale and reach but doesn't have a track record in selling stuff," said another label executive.

Google won't find its competition resting on its laurels. Jobs made it clear during his keynote Wednesday that Apple employees are deeply passionate about music. The Cupertino, Calif., company released an updated version of its iTunes software, adding Ping, a social network for music.

Although Google and Apple worked together early on, they have recenly become bitter rivals. Jobs reportedly felt betrayed by Google when it entered the phone business.

At Wednesday's media event, Jobs insinuated that Google was inflating its Android activation numbers with upgrades, a claim that was promptly denied by a Google spokesperson.
post #2 of 90
I bet this stuff really gets old for Apple and company.
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post #3 of 90
I would love to see a serious competitor to the iTunes Store. It would force Apple to innovate even more.

Every single online music store has failed or has no teeth: Walmart, Yahoo, MSN, Zune, Rhapsody, whatever. Maybe Amazon is the closest thing to competition, but even they have almost no impact on the market.

Good luck, Google. You have bungled a bunch of social media initiatives (Video, Wave, Buzz) plus the retail launch of the Nexus One handset. I'd love to see something aimed at the consumer that works from you guys.

Quote:
Originally Posted by AppleInsider View Post

"We're cautiously optimistic because Google has great scale and reach but doesn't have a track record in selling stuff," said another label executive.

This guy nailed it. Google really doesn't know squat about selling anything but search ads.

Note: I own shares of both companies and I think there's room for both of them. That said, AAPL blows doors on GOOG. If Google wants to talk the talk, they better walk the walk.
post #4 of 90
Quote:
Originally Posted by aplnub View Post

I bet this stuff really gets old for Apple and company.

Competition?
post #5 of 90
Google is seriously becoming a full featured competitor to apple in the mobile space. Android was supposed to be about defending google's borders in the age of mobile, but like some famous guy or girl said: The only way I know how to secure my borders is to expand them. I guess Google is applying this strategy. We'll see if Google will become overstretched in this expansion. Keep in mind Brin and Page were just started a search engine, which is very different from selling music.
--SHEFFmachine out
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post #6 of 90
Quote:
Originally Posted by aplnub View Post

I bet this stuff really gets old for Apple and company.

you mean inventing something and then have every company copy it to try to compete with them?
post #7 of 90
Eric T. Mole working the monkey-see-monkey-do "strategy" like it's goin' outta style.
post #8 of 90
Google's strategy.

Do whatever Apple's doing..... but with Ads.
post #9 of 90
Competition is good for everyone, I agree. I also expect Google to launch their own version of the iPod Touch to go along with that music store sometime next year.
post #10 of 90
Quote:
Originally Posted by AppleInsider View Post


"We're cautiously optimistic because Google has great scale and reach but doesn't have a track record in selling stuff," said another label executive.

Didn't they try selling cellphones for a few weeks? That is a track record.
post #11 of 90
Google has become a very boring and predictable company.
post #12 of 90
Most Google/Android fans are spoiled freeloaders who want everything free since Google keeps giving free stuff (not that it's a bad thing. I mean who doesn't want free right?). They aren't as willing to pay as Apple/iTunes customers are. The labels are still going to make more money from iTunes customers more likely. I bet Google will offer the labels a cut of advertising revenues.
post #13 of 90
Hard to bet against Andy, but I hope Google isn't banking on their last online innovation - Wave - a product so advanced no one could figure out what it did.
post #14 of 90
I wonder if the record companies are ready to give away their music free... with embedded ads? That's the only thing that's worked so far for Google, and even then, not 100% of the time.
post #15 of 90
Quote:
Originally Posted by AppleInsider View Post

"Finally here's an entity with the reach, resources and wherewithal to take on iTunes as a formidable competitor by tying it into search and Android mobile platform," said one label executive. "What you'll have is a very powerful player in the market that's good for the music business."

The interview above interview took place using FaceTime on the iPhone
post #16 of 90
Google to take on Exxon Mobil as they begin drilling for oil.
post #17 of 90
Quote:
Originally Posted by roehlstation View Post

Google to take on Exxon Mobil as they begin drilling for oil.

Actually, one of the few things for which Google deserves credit is their policy of investing in renewable energy research and development.
post #18 of 90
Quote:
Originally Posted by aplnub View Post

I bet this stuff really gets old for Apple and company.

Agreed. It is amazing how little originality exists in the technology world.
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #19 of 90
seems like you're gonna be able to get your movies music and TV from many places soon, just depends on the proprietary hardware or device...pretty awesome, hopefully prices will go way down.
Tech Apocalypse - Battle for the Sky.
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Tech Apocalypse - Battle for the Sky.
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post #20 of 90
Quote:
Originally Posted by alexkhan2000 View Post

Google has become a very boring and predictable company.

I am expecting their MP3 player soon. Then they will be looking for a fruit logo.
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #21 of 90
Quote:
Originally Posted by shadash View Post

Competition?

Yes and no. More to what he said below.

Quote:
Originally Posted by doyourownthing View Post

you mean inventing something and then have every company copy it to try to compete with them?

Yes it is the nature of the game but to have Company X (Second to table) always biting at your rear every time you turn around just gets old for Company A (Company already at table). While we as customers think this is great and it is healthy, it can be very draining and stressful for Company A.

While Apple is surely not the first or best at everything they do, you know it has to be aggravating to be very good at something and then have the same people (who use to sit on your BOD) try to dethrone you over and over and over at a lot of what you do.


digitalclips says it best below.

Quote:
Originally Posted by digitalclips View Post

Agreed. It is amazing how little originality exists in the technology world.
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post #22 of 90
If this is what it takes to get a Google-developed desktop syncing solution in place for Android devices, I'm all for it.
post #23 of 90
Quote:
Originally Posted by Wurm5150 View Post

I bet Google will offer the labels a cut of advertising revenues.

Very prescient observation. That's basically how Google has worn down the networks with Youtube: http://www.nytimes.com/2010/09/03/te...e.html?_r=1&hp

The labels are 'worried' about Apple? Wait till they become a subsidiary to Google's aspirations.....
post #24 of 90
Gaagle's motto is really, "Don't be evil; be evil-er!"
post #25 of 90
Quote:
Originally Posted by ihxo View Post

Google's strategy. Do whatever Apple's doing..... but with Ads.

Exactly. Next, they'll say that they were actually developing this service a year before iTunes came out.

Apple=Still the old Apple (limited marketshare due to tight hardware/software control). Google =The new Microsoft (copy everything Apple does).
post #26 of 90
Quote:
Originally Posted by shadash View Post

Competition?

No - pretentious, wanna-be Apple killers pounding their chest and proclaiming their vaporware to be superior to Apple's shipping products. (Not to mention the Greek chorus online clownboys following in their wake, predicting Apple's imminent demise.)

Competition? Yeah, sure, Apple only has a ten-year lead. They only put Tower Records and their ilk out of business, that's all. They're only the biggest seller of music on the planet today. Sure. They're terrified of competition.
post #27 of 90
Quote:
Originally Posted by jpellino View Post

Hard to bet against Andy, but I hope Google isn't banking on their last online innovation - Wave - a product so advanced no one could figure out what it did.

Dude, I've never even heard of Wave. What *did* it do?
post #28 of 90
I like having the Amazon option and Ill like having Google! Ill still prefer Apples 256 kbps MP4s when available, but having more options means more chances to find the song/album I want.
post #29 of 90
Quote:
Originally Posted by Chris_CA View Post

The interview above interview took place using FaceTime on the iPhone

ha! awesome!
post #30 of 90
Quote:
Originally Posted by quinney View Post

Actually, one of the few things for which Google deserves credit is their policy of investing in renewable energy research and development.

Easy to do when you don't actually produce a physical product....

Besides, I was being facetious.
post #31 of 90
Quote:
Originally Posted by ihxo View Post

Google's strategy.

Do whatever Apple's doing..... but with Ads.


very soon Im flushing my Gmail account for Mobile me

just cant handle Google anymore they are becoming MS more and more every day
post #32 of 90
Quote:
Originally Posted by aplnub View Post

I bet this stuff really gets old for Apple and company.

I bet they don't pay one bit of attention to it.

Google will screw it up - mainly because you and I aren't Google's customers - their advertisers are!

Wrong focus, poor experience will translate into lackluster penetration. The geeky fanbois will be all over it, but most regular people couldn't care less.
post #33 of 90
Quote:
Originally Posted by sheff View Post

Google is seriously becoming a full featured competitor to apple in the mobile space.

When you start seeing stories about Android developers hitting it big like you do with iOS App Store developers you might have a point.

Market share and gross sales do not necessarily denote "success". Just ask Nokia or RIM.
post #34 of 90
... good luck with that schmidt. You'll need it.

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post #35 of 90
Bash Google all you like for nipping at the heels of Apple in the hardware space. Let Apple try to compete with Google in ads. Google Analytics rules as does search. Apple knows where their strengths are and it isn't in going head to head with Google. They need to chill on the anti-Google theme or they will be crushed. They should seriously be looking at a strategy of no matter where your media comes from, store it in iTunes for convenient access to your iDevices

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post #36 of 90
Quote:
Originally Posted by DocNo42 View Post

... Google will screw it up - mainly because you and I aren't Google's customers - their advertisers are! ....

Agree. Google gives software away free to make money through advertising revenue. Their software does two things: 1. it provides screen real estate for their advertisers' ads, and 2. it gets eyeballs on their advertisers' ads.

Microsoft is different in that they actually sell software licenses for money. But the whole internet thing is completely incomprehensible to Ballmer. He has no clue how to generate revenue from ads. Microsoft ends up just buying web traffic by paying people to use their search engine, and of course taking ads out on TV and on popular web sites.

Remember those idiotic Jerry Seinfeld + Bill Gates ads? Yeah, didn't think so. I wonder how much it cost them to pay Seinfeld and buy all that air time. And for what? Microsoft's Online Services division is losing $700 million per quarter. Google makes money online, Microsoft loses money online. Yin and yang.

But Google has one trait in common with Microsoft: they have extremely poor taste. Google's software all looks like the generic aisle at the Dollar Store.

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post #37 of 90
and Apple likes it that way all the way to the bank. Its just as easy to buy from Amazon and have the song file located in the same folder as the iTunes songs for syncing. I have found Amazon to offer very competitive pricing. People like to do what's easy. Don't shop the competition and you may end up paying more.
post #38 of 90
Quote:
Originally Posted by LighteningKid View Post

Dude, I've never even heard of Wave. What *did* it do?

It was awesome. It was a collaborative tool, where multiple people could edit stuff, sort of a mashup of a wiki and IM, except that you could see changes in real time, who made the changes, and all without Flash. Problem was that too few people used it and Google decided to kill off a promising use of HTML and Javascript thanks to "financial issues".
post #39 of 90
My question is, what would anyone on here consider successful? We know Apple owns the US market in music sales and does well overseas. So what's considered successful if you're a competitor to Apple in the music space?
post #40 of 90
Quote:
Originally Posted by ghostface147 View Post

My question is, what would anyone on here consider successful? We know Apple owns the US market in music sales and does well overseas. So what's considered successful if you're a competitor to Apple in the music space?

Surpassing them in music sales?
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