Google (Nasdaq: GOOG) is apparently ready to
dive into the digital music realm, according to
TechCrunch. Multiple sources are telling the tech blog
that the launch of Google Audio is imminent.
Will this be yet another streaming service, or a more
ambitious ad-supported download offering?
It may very well be neither. Google partnered with
Top100.cn to offer a free ad-based music service in China
last year. We can't draw parallels to that offering, though,
because China is a country where 99% of the music consumption
is believed to be pirated. The labels were more than willing
to cave in to a revenue-sharing option, because it was better
than what they were getting from music searches through sites
like
Baidu (Nasdaq: BIDU) and
Sohu.com 's (Nasdaq: SOHU) Sogou:
Nothing!
There is just no way that an ad-based downloading service
can deliver the kind of revenue that the major labels receive
through
Apple 's (Nasdaq: AAPL) iTunes or premium
subscription providers such as
Best Buy 's (NYSE: BBY) Napster or
RealNetworks ' (Nasdaq: RNWK) Rhapsody.
The opportunity here may rest in attracting unsigned and
indie-label artists -- similar to the old MP3.com site -- but
that would only address the supply side of the equation.
Moving beyond the stream?
It bears pointing out that Google has already been
wheeling and dealing with the major labels, brokering
revenue-sharing deals with many of them through its popular
YouTube video-sharing site. However, those are streams.
Google has a tall order if it expects labels to sign off on
free -- or even discounted -- music downloads, since the
music makers would be all but kissing digital sales
goodbye.
I also think the Google Audio name is important. Why not
Google Music? Clearly, this will be about more than
prerecorded music, if it ever does materialize. Will its
Google Books digitization efforts also be transcribing
out-of-print and public domain texts into audiobooks? If so,
Amazon.com (Nasdaq: AMZN) may not take this
lying down, as a retailer of books, digital books, and MP3
audiobooks through Audible.com.
For now, let's let this crispy rumor simmer until it's
official. One has to think that Google won't show up late to
the game with a poor man's Pandora. Not everything that
Google touches is gold -- or even ambitious -- but it's
usually well-thought-out and strategically savvy.
Until the details come in for a sound check, it's safe to
mute this chatter.
What would you like to see in Google Audio? Name your
tune in the comment box below.
This article was originally published as
Will Google Rock?on
Fool.com
Copyright © 2009 The Motley Fool, LLC. All rights
reserved.
|