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Google reportedly has plans to launch a web-based music sale service that will rival Apple's iTunes.  (Source: Google via TechCrunch)

The new service will reportedly stream music from your PC, over the internet to Android handsets.  (Source: Sprint)
There's a storm brewing -- Google Music is incoming and iTunes must brace itself for the impact

In the world of online music, iTunes has long reigned supreme.  It enjoys such a dominant position that it is currently the subject of a U.S. Federal Trade Commission inquiry investigating whether it abused smaller competitors like Amazon.com.

Apple's days as the only big player on the market may be numbered, though.  At Google's I/O conference last month, the company previewed a web-based service for developers.  And
TechCrunch two weeks ago discovered a "Google Music" logo hosted by the company.  Now CNET has joined the buzz, citing numerous industry sources as saying a launch of Google Music could come as soon as the fall.

Google enjoys one critical advantage that could allow its rebel service to ultimately crush Apple's music empire.  That advantage is search.

Close to a billion users visit Google every day, many of them searching for bands, songs, and album titles.  By tying these searches to subscription-based streaming services and web-based digital downloads akin to iTunes, many music executives believe that Google may promise more sales than Apple.

Its rivals have tried to keep Google out of the music business.  After Lala and iLike teamed with Google to offer streaming music with searches, Apple snatched up Lala and Myspace acquired iLike and both companies shut down the streaming.

The decision by Google to launch its own service is like a dream come true for music labels.  They are reportedly fed up with Apple, which currently sells over one quarter of the 
total music sold (digital or otherwise).  However, the current competition -- Amazon.com and Myspace Music -- lack the sales to pose a serious threat, which means that Apple gets to dictate whatever terms it wants to the labels.  That's a situation that they're not very satisfied with.

Zahavah Levine, YouTube's general counsel who previously worked with RealNetworks' Rhapsody music subscription service, is reportedly working to cook up the new service.  YouTube has already enjoyed success in the music business thanks to its plethora of music videos.

Google's new service reportedly will have many unique features.  Among them will be the ability to stream music from a library on your PC to your Android smartphone.  Google picked up a company called Simplify that developed this technology.  Google's service is also reportedly going to be cloud based -- available exclusively as a web application.  While Apple is also reportedly working on a cloud version of iTunes, Google reportedly wants to beat Cupertino to the punch.



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RE: Really, truly? Can you cite your source?
By theapparition on 6/16/2010 9:01:18 AM , Rating: 2
quote:
I'm not saying it ain't so, but I would have thought the music industry would love someone who sold 1/4 of their product.

Let's say you are a business, and your largest reseller sells 50% of your product. A full half!!! Sounds like a great deal, right?

Now consider that reseller demands a larger share of profits (even at your loss), forces demands, and inhibits your access to end customers.

Not looking so good now, is it.


By gcor on 6/16/2010 9:14:17 AM , Rating: 2
Is that the case is it? Apple take a bigger margin than retailers??? I'm surprised. Given the iStore doesn't have very significant retail space and staff costs, I would have thought Apple could give a significantly higher margin to the music companies than retailers could.

And they demand the Big Six sell at a loss??? I wouldn't have thought the Big Six would do that, given that they have most of their product going out via other channels. Perhaps they choose to accept a short term loss for a long term gain, however, the Big Six aren't known to be hugely in favor of moving from their existing business model, so I don't realy buy that either

Do you have any info to back up that Apple provide smaller revenues than the people who sell the other 75%? What about forcing the Big Six to sell at a loss?


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