Google reportedly prepping Apple iTunes Store killer

“Google Inc. is expected to roll out a music download service tied to its search engine later this year, followed by a ‘cloud’-based subscription service in 2011, according to people familiar with the Internet giant’s discussions with the music industry,” Scott Morrison reports for MarketWatch.

MacDailyNews Take: Hey, Eric, you derivative creep: Yesterday, Steve Jobs wore a pink blouse with semi-matching pink cowgirl hat to work.

Morrison continues, “Google hasn’t made any specific proposals yet, but the nature of discussions with music companies suggest the Internet giant is likely to roll out its music services in two phases, said people who have been briefed on the talks. The launch of Google’s download music store is still months away, they said.”

“The launch of a Google music store would heighten tensions with Apple Inc., whose iTunes store is the leading U.S. digital music seller,” Morrison reports. “Google’s push into music retailing would be welcomed by music labels that are increasingly concerned about Apple’s dominant position among U.S. music retailers.”

“The first phase of Google’s music service is expected to be a Web store where users can buy and download tracks, music industry insiders said… But they cautioned that Google hasn’t yet made any specific proposals to the music labels, so the search giant’s plans aren’t entirely clear at this point,” Morrison reports. “These people also said the download store would be an ‘interim’ step toward what is expected to be a more ambitious cloud-based subscription service compatible with mobile phones built with Google’s Android software. A cloud-based service would enable subscribers to stream music directly from the Internet to their mobile phones, so that users wouldn’t need to store music files on their devices.”

Morrison reports, “Apple in the past several months bought and then shut down online music service Lala.com, prompting widespread speculation it might also soon launch a new cloud-based version of its iTunes music store.”

Full article here.

MacDailyNews Take: Google. The new Microsoft. Copy Apple poorly, copy Apple poorly, copy Apple poorly, then copy Apple poorly some more.

42 Comments

  1. I fear this could be very bad for Apple: those music labels that gave Amazon better pricing and exclusive content to undermine ITMS will do it again for Google just to force Apple to submit to their demands and/or drive them out of the picture.

  2. Fredo,

    Why would Apple bother to continue to operate a dead-end version of Lala while using it (or parts of it) to build new iTunes Store services?

    It’d be too confusing and not worth the effort. Better to just shut it down and get the future ready.

  3. @ LeftCoastDude,

    “Unless all of you think monopolies are a good thing, competition should be welcomed.”

    Another Apple Monopoly Myth.

    While iTunes has about 70% of the global digital music sales, those numbers are dwarfed by the amount illegal digital downloads. What’s more, that 70% is only around 30% of total music sales when CDs are factored into the mix and 10% when illegal downloads are also factored in.

    Even if Apple had a monopoly in music sales, they would still have to abuse that monopoly in the consumer space for us to be pissed off about Apple’s power.

  4. This is rich: “But they cautioned that Google hasn’t yet made any specific proposals to the music labels, so the search giant’s plans aren’t entirely clear at this point.” Pure speculation. So, Google is simply getting better at the FUD game. That’s what the headline should be: “Google Ramps Its FUD Game.”

  5. Unfortunately, it’s a bit late for the concept. Carriers are slowly moving away from unlimited data plans to limited, or metered mobile plans. Streaming music from a cloud will likely quickly eat good parts (of not all) of the monthly allotment. Not to mention cripple the mobile networks in the US.

    As this is now massive speculation, it isn’t worth debating this much, but even if any part of it ends up being true, it will surely be a moderate-to-big flop.

  6. didn’t google try and do something similar a few years ago? I tried doing a search for it, but of course all results coming back are now talking about this new music store…

  7. The labels should be careful what they wish for.

    Certainly, if it’s Google, it will be in perpetual beta. And although they are marginally better than MS at copying Apple’s creative work, they are still late to the game. Apple will be several steps ahead by the time Google releases it.

  8. I wonder what Eric T. Mole was up to at the recent Bilderberg 2010 held in Sitges, Spain. He was in attendance along with Bill Gates and Craig Mundie, Chief Research and Strategy Officer of Microsoft.

    One thing is certain, they were up to no good – reportedly ‘green-lighting’ an attack/war with Iran and higher gasoline prices coming in late fall.

  9. I miss lala. The opportunity to listen to a song, or full album, all the way through one (1) time to decide if you want to purchase it was amazing, I discovered (and purchased) lots of new music that way. Now it’s gone. Whatever apple does with lala I can’t imagine they’ll let you preview full songs and albums again. It’s a shame.

  10. Certainly, Google can be just at least as successful as Amazon at selling digital music. Amazon had the good sense to (legally) tie into iTunes in a way that Apple openly makes available to third parties. You download and install a small program from Amazon (Amazon MP3 Downloader). You buy an MP3 at Amazon.com and this program downloads the song and puts it into your iTunes library automatically, ready to play or sync to your i-devices. You don’t need to add the song file to iTunes manually.

    However, Amazon does only a small fraction of volume of the iTunes Store. I don’t think Google can do any better, and is more likely to take share away from Amazon.

    Also, Apple primarily makes its profits from selling hardware. The iTunes Store is basically a value-added service for its hardware customers. Where others need to profit from selling music, Apple can just break even if necessary. Apple is probably very happy that Amazon sells MP3s in a way that ties in nicely with using iTunes, even if it means some lost music sales at the iTunes Store. Those Amazon customers are still mostly using Apple devices to play those songs, and Amazon happens to sell millions of iPods and other Apple hardware every year for Apple.

    Let’s see how Google handles it (assuming this report is true); join the existing ecosystem or compete against it.

  11. Why would music and movie industry bosses allow Google to sell or rent (subs service) their content when Android and Chrome are wide open to digital theft? Only tight DRM would protect the content on a sieve-like OS, a toddler could steal from.

  12. This is just LOL.
    Google continues to spend lots of
    money on all sort of stupid things.
    I’m not a big fan of renting music, subscription and streaming but I think Apple probably needs to launch such a service in the coming years to stay competetive.

    But streaming and renting can’t be very good and profitable for either the artist or the music company. Must be very small profits on let’s say something like a Zune subscription for both the music companies and Microsoft.

    I want to buy my music. I hate to be forced to pay in order to keep my music. It would feel like extorsion to me.

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