Google planning music store to take on Apple

Posted:
in iPod + iTunes + AppleTV edited January 2014
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.
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Comments

  • Reply 1 of 89
    aplnubaplnub Posts: 2,597member
    I bet this stuff really gets old for Apple and company.
  • Reply 2 of 89
    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.
  • Reply 3 of 89
    Quote:
    Originally Posted by aplnub View Post


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



    Competition?
  • Reply 4 of 89
    sheffsheff Posts: 1,407member
    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.
  • Reply 5 of 89
    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?
  • Reply 6 of 89
    Eric T. Mole working the monkey-see-monkey-do "strategy" like it's goin' outta style.
  • Reply 7 of 89
    ihxoihxo Posts: 562member
    Google's strategy.



    Do whatever Apple's doing..... but with Ads.
  • Reply 8 of 89
    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.
  • Reply 9 of 89
    quinneyquinney Posts: 2,526member
    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.
  • Reply 10 of 89
    Google has become a very boring and predictable company.
  • Reply 11 of 89
    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.
  • Reply 12 of 89
    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.
  • Reply 13 of 89
    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.
  • Reply 14 of 89
    chris_cachris_ca Posts: 2,543member
    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?

  • Reply 15 of 89
    Google to take on Exxon Mobil as they begin drilling for oil.
  • Reply 16 of 89
    quinneyquinney Posts: 2,526member
    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.
  • Reply 17 of 89
    MacProMacPro Posts: 18,470member
    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.
  • Reply 18 of 89
    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.
  • Reply 19 of 89
    MacProMacPro Posts: 18,470member
    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.
  • Reply 20 of 89
    aplnubaplnub Posts: 2,597member
    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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