Google planning music store to take on Apple
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.
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.
Comments
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.
"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.
I bet this stuff really gets old for Apple and company.
Competition?
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?
Do whatever Apple's doing..... but with Ads.
"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.
"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?
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.
I bet this stuff really gets old for Apple and company.
Agreed. It is amazing how little originality exists in the technology world.
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.
Competition?
Yes and no. More to what he said below.
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.
Agreed. It is amazing how little originality exists in the technology world.