iTunes could finally have a legitimate competitor in Google.
CNET reported multiple music industry sources say that Google is testing its prototype music service on its own servers. With the title "Google music," the service would work through the Android market.
But that's not all. The new application was supposed to be ready for late 2010, but the search engine is bogged down in publishing agreements with the four major labels: Sony, Universal, Warner Music and EMI.
While we don't know many hard details yet, there's going to be a lot of speculation until Google's I/O Conference in May. But if you're a consumer, Google Music seems like an endgame to this era's battle with the music industry. Outlined below are some of the situations that Google, the music industry and consumers will have to deal with, should Google Music be launched.
ON CLOUD NINE
You know how Google Docs works, right? A document is saved on your Gmail account, and you can access all your work from any computer, all the time, via your email. This is cloud computing, the device that Google has excelled at more than any other service, even though they're losing millions of dollars every day by giving it to you, the consumer. That's because they make all this money back (and much, much more) in search advertising. It's a service, it's free and it's simple. What consumer doesn't want this?
Just think of your music library in this style. Imagine all your (legally) downloaded music, on a cloud. And while reports indicate Google Music would most likely be a streaming service, that's still your library that you can pull up at any time. And if you have an Android phone with 3G/Wi-Fi, it could all be on there too.
THE GOOD NEWS (FOR PEOPLE WHO LOVE BAD NEWS)
It could be a while before we see this. Even if tests are going well on the Google homefront, it doesn't change the fact that Google doesn't have any music to stream. And even with the four majors in talks with Google, we're not taking into account the independent labels that don't upstream or publish via a major.
Could Google even afford the amount of royalties these labels would charge? If you think the RIAA charged a bit much for a couple of downloads, Google's library would surpass tens of millions of dollars in mechanical licenses and song royalties. At that point, it doesn't matter how many people are using your open system, someone else is probably going to have to pay.
BITTERSWEET SYMPHONY
Some things are still inconclusive about Google Music, the largest question being, "What will become of the music industry?" If Google begins to wage war against iTunes, prepare for a long, ragged dogfight.
If you give a moose a muffin, he'll probably want some milk. And pretty soon Google will need its own MP3 player. And then its own recommendation engine. And then a doppelganger to Genius. The list goes on an on. Similar to iTunes, Google is a prime example of the benefits of complete vertical integration.
The difficulty in seeing how this specific situation plays out: Who is willing to give up their iPod and iTunes to take a chance on Google? While they by no means have a monopoly (digital downloads only received about 31 percent of total music sales in 2009), iTunes is definitely the banner name for digital music. And what about other subscription catalogues like Rhapsody?
When you're running up against an Internet giant who might as well have "We own you" as its slogan, smaller music services will have a tough time competing with Google's potential streaming service.
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