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June 14, 2010 4:13 PM PDT

Google music store could launch this fall

by Greg Sandoval

Eric Schmidt, Google's CEO, is preparing to take on Apple's iTunes. Schmidt visited with Doug Morris, Universal Music Group CEO (left) and Rolf Schmidt-Holtz, the Sony Music chief, during the Vevo launch party last December.

(Credit: Greg Sandoval/CNET)

With the iTunes' banner waving supremely over the digital music landscape, Google continues to build its own music service, CNET has learned.

According to multiple music industry sources, Google could launch a music service that offers song downloads and streaming music as early as this fall.

Google has already signaled that it wishes to give users of phones equipped with Google's Android operating system a better music offering. At Google's I/O conference last month, the search engine offered attendees a demonstration of a Web-based iTunes competitor. Also TechCrunch reported two weeks ago that it discovered a "Google Music" logo hosted on Google's domain.

But Google's plans go beyond Android, say music sector insiders. CNET has learned that Google first stoked excitement among executives at some of the top four major labels during the Consumer Electronics Show in January. That's where they revealed some of the features that a Google music store might include, such as tying digital downloads and streaming music to Google's search results.

Google did not respond to interview requests.

Google knows music
Google first tried wedding songs to search last fall. The Mountain View, Calif.-based company launched Music Onebox and enabled people searching for song titles to stream the tunes via online music stores Lala.com and iLike. The experiment seemed to be derailed after those companies were acquired by competitors; Apple and MySpace respectively.

A Google-backed challenge to Apple's dominance of legal online music sales would be warmly welcomed by the top labels. They have tried for years to convince heavy hitters such as Google, Facebook, and AOL to take on iTunes.

The other top digital music stores, Amazon and MySpace Music, have yet to cut into Apple's huge market share. Those two big names, however, don't possess Google's reach with Web consumers.

Google CEO Eric Schmidt can already boast some success in music with YouTube. Before three of the four top labels launched Vevo and took control of their videos, YouTube was by far the Web's most successful streaming music service. Zahavah Levine, YouTube's general counsel who previously worked with RealNetworks' Rhapsody music subscription service, has a prominent role in helping to develop Google's new music store, the sources said.

The other piece of Google's music puzzle is software company Simplify Media, which Google acquired earlier this year after kicking the tires on several cloud-based media services. Simplify enabled PC and Mac users to stream songs from their computer-based iTunes or WinAmp libraries to other Web-enabled devices. Vic Gundotra, a Google engineering exec, said during I/O that Google would build Simplify Media's technology into a future version of the Android OS and thereby boost Android's music features.

Google is racing iTunes to be first with a cloud service. Sources in the music and movie sectors have said Apple is working on a Web-based iTunes service that could enable users to store music and video on digital shelves and then stream the content to Web-enabled devices.

So, while Apple works on a cloud service, CEO Steve Jobs might be surprised to find Google has begun serenading iTunes users.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at @sandoCNET.
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Add a Comment (Log in or register) Showing 1 of 2 pages (91 Comments)
by KingOfTheJungle June 14, 2010 4:33 PM PDT
Google! i'll be one of your guests
Reply to this comment 11 people like this comment
by eltoro2827 June 14, 2010 9:52 PM PDT
google, i dont trust you...so i wont be one of your guests.
8 people like this comment
by pradhanavs June 15, 2010 9:48 AM PDT
Why Google? so it can serve their ads in your songs? I want to listen to the songs i bought without any ads in or in between them...If not i don't get it..Why is Google interested in it? Their one and only target is to display ads on anything and everything...
2 people like this comment
by microsoap June 22, 2010 5:44 PM PDT
2 the fanboy repliers:

* 60 vulnerabilities being patched for Apple. Apple's always secure? WHOOPS!

* So iAds doesn't exist???? WHOOPS again!
by usarioclave1 June 14, 2010 4:42 PM PDT
The downside to the service, of course, is that google will use your playlist information to sell you more ads.

On a lighter note, there will be minimal customer service and a base-yet-functional UI that will be difficult for partners to manage. Reports on music sales will be difficult to get or non-existent, and there will be minimal customer data available. But then again, maybe they're not using the Google Checkout rollout plan.
Reply to this comment 4 people like this comment
by mike_ekim June 15, 2010 7:24 AM PDT
Wow, you're really good at making pessimistic guesses.
by Police_States_of_America June 14, 2010 4:50 PM PDT
itunes has so many things wrong, hope google improves!
Reply to this comment 9 people like this comment
by solitare_pax June 14, 2010 6:40 PM PDT
No mention of Microsoft and it's awesome Zune music store?

Tsk. CNET is acting like Microsoft doesn't matter.
2 people like this comment
by ckh1272 June 15, 2010 12:38 AM PDT
@Police_States_of_America--No details on what you think is wrong with iTunes? Hard to solve what they don't know.
1 person likes this comment
by mike_ekim June 15, 2010 7:27 AM PDT
Pax: is that sarcasim? Because after I got burned with buying music in a WMA format that was supposed to work with my MP3 player, but didn't, I haven't dared to buy any music associated with M$.
by ferricoxide June 15, 2010 1:08 PM PDT
@ckh1272:

You can't tell me that Apple doesn't know that iTunes is a system-slogging memory and CPU pig.
1 person likes this comment
by BlackMicro June 14, 2010 4:58 PM PDT
Do we really thing they'll be better than Amazon, Apple, and all the others? The one thing they have going for them is the Android OS. But that is no where near the critical mass they need to make it successful.
Reply to this comment
by hashref June 14, 2010 5:29 PM PDT
There is no 'media cloud' for your personal music at the moment made available by the companies you listed. The technology where you can add your own music files to the cloud and stream them over your smartphone's data plan (or any other device) whilst driving down the highway, sitting on a bus, etc., will likely have plenty of demand. No more usb/bluetooth transferring of your music. No more synchronizing. Play from your phone. New home and car stereos that connect to your music cloud. The list can go on. It will be interesting to see who else joins in on the race for this technology other than Apple and Google.
by kfdodgerfan June 14, 2010 5:58 PM PDT
@ hashref. Funny. Many of our mobile data plans just got locked into 2GBs a month. How fast will that limit be maxed with this new cloud music service?
4 people like this comment
by cometman7 June 14, 2010 9:25 PM PDT
@kfdodgerfan
And now you know why we just got lost our unlimited data. It's easy to sell things as unlimited when you know it's not going to get used. But once people stand a chance to put those claims to the test...
2 people like this comment
by NPGMBR June 15, 2010 6:25 AM PDT
kfdodgerfan - Exactly what I was thinking. The companies that provide the pipes are moving toward tiered services and that means more money for the consumer. If thats truly the case nothing will change till prices fall and ultimately make having an iPod, Zune or whatever obsolete. Not to mention that cloud streaming wont be as reliable for uninterrupted streaming of music like my Zune is.

But I suspect that over time this will change.
1 person likes this comment
by hellowselena June 14, 2010 5:01 PM PDT
mmmmm..Good luck Google..LMAO
Reply to this comment 3 people like this comment
by Whoshebooboo June 14, 2010 5:46 PM PDT
My money is with Google - not exactly sure why you're laughing.
14 people like this comment
by hellowselena June 15, 2010 11:32 AM PDT
Wow. Now I laugh at you. Wise choice!
by microsoap June 22, 2010 5:45 PM PDT
So any chance this new competing music service will make its way on to Apple handheld devices (iPods, iPhones)? Of course NOT! Steve Jobs' infamous Walled Garden. Now watch all the fanboys cry foul that it's "unfair" Apple _doesn't_ have the music monopoly.
by kfdodgerfan June 14, 2010 5:09 PM PDT
Isn't iTunes the largest music retail store in the world? Even bigger than Walmart? If so, Google will have a long way to go to catch up.
Reply to this comment 2 people like this comment
by gargamel360 June 14, 2010 5:27 PM PDT
Oh, I wouldn't discount them if I where you. They have more marketing data at their command
(for free) than most companies could ever compile.
7 people like this comment
by Whoshebooboo June 14, 2010 5:47 PM PDT
On the Internet your competition is only one click away. Doesn't seem like that big of a stretch. Are you implying that Apple has a monopoly?
6 people like this comment
by kfdodgerfan June 14, 2010 5:56 PM PDT
@ You 2 who responded. That's what everyone said about Amazon when they launched their mp3 store. It has done well but certainly hasn't caught up to iTunes.
by Whoshebooboo June 15, 2010 2:56 AM PDT
I didn't even know Amazon had a music store.
1 person likes this comment
by mike_ekim June 15, 2010 7:30 AM PDT
Amazon doesn't advertize much on TV. Apple does, and so does Google (Droid). Google will just add a 5-second blurb about it's music store in it's droid ads and spread the word far better than Amazon ever did.
2 people like this comment
by georgiarat June 15, 2010 6:44 PM PDT
Google will succeed when they call you threatening to expose certain data they collected on you X years ago unless you buy from the Google store. They are already providing data to this administration on individuals already as ammunition for their use.
by nauj_solrac June 14, 2010 5:25 PM PDT
@kfdodgerfan

No worries.

Android will eventually catch up to the iPhone. =)
Reply to this comment 2 people like this comment
by susanai June 14, 2010 6:12 PM PDT
Android has 'caught up' and surpassed iPhone sales.
3 people like this comment
by cvaldes1831 June 14, 2010 7:14 PM PDT
@susanai:

No, Android (a Google phone OS) surpassed iPhone on AdMob (a Google subsidiary) ad requests. US only. Nothing to do with handset sales, just ad requests from the devices.

The same AdMob report (April data) shows that iPhone still has more handsets both US domestic and abroad. Plus, AdMob only keeps track of ad requests on its own ad network. They don't know what people are doing when they are visiting sites supported by other ad networks, or when smartphone users are accessing content that isn't ad-supported.

This begs several questions. Why do Android users look at so many ads? Are popular Android apps requesting AdMob content more often than similarly-popular iPhone apps? Do pre-installed Android apps access AdMob on a regular basis? (Note, no pre-installed iPhone app does so.)
3 people like this comment
by techiefool June 14, 2010 9:04 PM PDT
NPD, Gartner have both said Android phones sold more than IPhone in Q1 2010 in US. in Q1 2010 it was a straight contest between droid and IPhone. There were no other android superphones in US. What nielsen is talking about is installed base. Anecdotally it is more difficult to estimate installed base than to estimate how many phones were sold in a given quarter.
2 people like this comment
by mike_ekim June 15, 2010 7:33 AM PDT
@ cvaldes1831: your post is correct today but will likely not be correct in a year or two.

Android phones are selling at a faster rate than iPhones. It's a bit like when Wii had sold fewer units than Playstation but were selling faster, and all the Playstation fanbois said, 'it's a fad, Wii will never outsell Playstation'.

And then it did.
1 person likes this comment
by microsoap June 22, 2010 5:48 PM PDT
You mean the multitasking and choice of wallpapers that just became available yesterday that have been available on Droid phones for quite a while now.

Not to mention the fact that _any_ cellphone w/ a colour screen has been able to change wallpapers for the past DECADE now!

Oh, but there goes Apple again "leading" the way that "everyone will enventually copy". I guess wireless syncing (*coughs Zune HD* coughs*) will come some time in 2019 and IT will be the "first". Sure... sure.
by Diamondz_R4_Ever June 14, 2010 5:41 PM PDT
Wow Google is reaching the top.
Reply to this comment 2 people like this comment
by cloudmatt June 14, 2010 5:46 PM PDT
A new store is great, nothing against Amazon though. I hope it comes with a better media player in android though.

Keep the hits coming Google.
Reply to this comment 3 people like this comment
by seven7dust June 14, 2010 5:57 PM PDT
they first need to improve the music experience on Android , So far HTC has done a decent job with the sense music player ,but the default Android music app is pretty much a fail !
Reply to this comment 2 people like this comment
by mike_ekim June 15, 2010 7:36 AM PDT
Yeah, but that's just an app. If they can get major (and minor!) record labels to get on board, and get their prices/licensing right, I'm sure they can get a better app.

And, in the theam of Android's open source goodness, why says there won't be 10 or 100 or 1,000 apps for playing music on Android? Customizable interfaces and features with the same core DRM program (I expect DRM after all) :)
1 person likes this comment
by yak2roger June 14, 2010 5:58 PM PDT
My money is NOT with Google. Why?
Well, Mc'Donalds tries to compete with Starbucks right?
The product is just as good, it's a little bit cheaper.
But, do you know anyone who meets at Mc'Donalds for a latte?
Same thing.
Apple has a "cool" factor which Google can't buy.
Goodbye!
Reply to this comment 6 people like this comment
by rmcrowley2000 June 14, 2010 6:25 PM PDT
Even so, if you look at the latest McDonald's letter to the shareholders, they cite the fancier coffee drinks as the main reason for their increasing revenues. So while it might not be at the same level as Starbucks, it was still a good venture. Google doesn't have to "beat" Apple. They just need to make a music service compelling enough to turn a profit, or one that can open enough future doors to make it worthwhile.
7 people like this comment
by NPSF3000 June 15, 2010 1:58 AM PDT
If the "gay" factor is your thing, feel free to stick with apple :)
3 people like this comment
by WR101 June 15, 2010 3:48 AM PDT
I wouldnt say the mcdonalds comparison is right at all.

Consider this, your comparing half decent starbucks coffee with not so good macdonalds coffee. Correct?

Although what do you think will be not so good about googles music service, the bit rate will more than likely be as good in fact i would like it if itunes provided a better bitrate. Also i can't imagine google's customer service would be any worse than itunes considering I emailed them about a problem over a week ago and still haven't had a reply (there is no direct phone number for queries).
2 people like this comment
by mike_ekim June 15, 2010 7:37 AM PDT
@ yak2roger: Just because *you* don't know people who dring McDonald's coffee, doesn't mean Google won't have a successfull music store.

McDonalds DOES sell a lot of 'premium' coffee.
1 person likes this comment
by alangerow June 22, 2010 2:50 PM PDT
I don't know anybody who meets at Starbucks for a latte either.
by DonnieGee June 14, 2010 6:12 PM PDT
Right now all of the various online music dealers could easily stand some improvement!!! So, I hope they all pay attention to my comment. First, mp3 is nice but flac is much much better since there is no loss of sound quality compared to a CD. Second, please supply all of the meta-data. I'm talking about high quality pictures that would normally accompany a CD if you purchased it. It could be in PDF format. I've bought a few that had that and it's a great addition. Also, how about providing lyrics and maybe, in the comment section, a brief summary of the band or album. I've been really disappointed after certain purchases that provided little or no meta-data - in some cases no song titles (which was quite annoying). So, Google, if you're reading this, please consider my suggestions and make your site the one everyone will want to go to. Also, provide the software to convert flac files to mp3 and to make audio CDs once a song/album is purchased. If you do these things, I may have to start making my purchases on your site instead of Amazon. Oh, and one more thing, Amazon and iTunes are both lacking in the kind of music I prefer which is Progressive Rock. Check out http://www.caerllysimusic.co.uk for examples of the kind of music I'm referring to. You can't get most of these titles via Amazon or iTunes which means I usually have to purchase a CD at import price plus shipping and handling costs.
Reply to this comment 1 person likes this comment
by gmanm1 June 15, 2010 5:58 AM PDT
Nobody cares about FLAC, 256-320kbps is perfectly fine for the masses. Who wants to stream 100mb flac file to their phone
1 person likes this comment
by 1ZepWant2 June 14, 2010 6:52 PM PDT
Google first needs to learn to write some decent software first.
Reply to this comment 3 people like this comment
by unknown unknown June 14, 2010 10:11 PM PDT
Care to elaborate?
3 people like this comment
by mike_ekim June 15, 2010 7:39 AM PDT
Google/Android is open source, you and nearly 7 billion other people are more than welcome to writy your own software for it. Or shop around for apps, amny are free.

Or perhapse you care to complain that the attendant at the full-service gas station doesn't pump your gass well enough for you?
1 person likes this comment
by microsoap June 22, 2010 5:50 PM PDT
You mean the Apple type of "decent software" that only YESTERDAY introduced multitasking, that's been available on Droid phones for 1+ year now? Talk to me in the Fall (2010) when the iPad _finally_ gets around to be "allowed" to do it.

Oh, to be a Kool-Aid drinker of Steven H. Jobs-Christ's cult. lol
by tw1975 June 24, 2010 3:44 PM PDT
1ZepWant2 is actually a very mad Steve Jobs.
by imjsims June 14, 2010 7:18 PM PDT
I would love some basic software nothing flashy like the zune software or no software! Just download the song like amazon. That is what is so great about droid you do not have to have google software to add music to your phone. That is the downfall to itunes one day. I do not want to have to use itunes just because I have an ipod, Don't want to have to use zune software just because I have a zune and will not want to have to use google music software just because I have a droid phone. So if they do not make you use the software then I think they will go far! All the music services out there are great. I would have to say amazon is the best, the search is great and all you have to have is the small downloader.
Reply to this comment 1 person likes this comment
by NPGMBR June 15, 2010 6:37 AM PDT
Surprise, you don't have to use Zune software as long as your tracks are downloaded as MP3s. However, unlike you I ilke the Zune environment so I prefer the software but I prefer not to be tied into a specific device eventhough I love my Zune.

But Zune offers me the option of tagging a song I hear on the radio to download when I sync my device with my PC and because I subscribe to Zune Pass I can download and listen to it as many times as I want to see if I really wanna keep the song. If I could get that kind of functionality without the software I would be pleased but I wouldn't necessarily dump the software for it.
by broman07 June 14, 2010 7:33 PM PDT
Google is the new Microsoft. Eventually, their lack of focus will catch up to them, but not before they make a ton of money off of a bunch of mediocre knockoffs. The McDonald's comparison is appropriate. I can't stand McDonald's.
Reply to this comment 2 people like this comment
by mike_ekim June 15, 2010 7:41 AM PDT
I htink google has seen that being a web portal/search engine is a small piece of the pie and is moving in to copy Apple's business model.

If Apple can sell computers, phones, music players, and music, why can't Google run a search engine and sell phones and music?

Overall, Google's business model is still more focued that Apple's.
by alangerow June 22, 2010 2:52 PM PDT
Well, when your focus is "to organize the world's information", it takes a lot of different projects to do that.
by SixString16 June 14, 2010 9:20 PM PDT
iTunes is a big piece of bloatware. Google knows this. For all of you people who have android devices, you know the joy and just dropping music files without having to use a clunky iTunes interface.

If Google could get something out to the masses that would be a better interface, they will be able to make some noise. Nobody is going to overtake Apple, but there's a mighty big dent that could be made here.

On the other hand, I don't mind it so much that the record companies are living off of Apple these days. If you give the labels too much say, they will almost certainly screw their own customers. This will be interesting to watch over the next few weeks and months.
Reply to this comment 1 person likes this comment
by microsoap June 22, 2010 5:51 PM PDT
The infamous Walled Garden, the media vending machine known as iTunes, nickle and diming you to death. You said it right about this bloatware.
by tundraboy June 14, 2010 9:33 PM PDT
This is not a market that is up for grabs anymore. Just because Google wishes it were a big player in this market doesn't mean it will happen. Pretty much everyone who wants to maintain a digital music library already has one and it's in iTunes. You can dream all you want about Android luring people to drop iTunes and transfer all their music to whatever Android comes up with but no one can offer anything much different from iTunes that people would be compelled to switch. Only the people who hate Apple enough to post about their hatred in articles like this will switch and there aren't that many of you because if you really hate Apple, you wouldn't be on iTunes in the first place. So dream on, dreamers. If Amazon and Zune couldn't crack this market, what makes you think Android will? Lot's of people already have Music capable non-iTunes phones and guess what, they still prefer using their iPods for music.
Reply to this comment 1 person likes this comment
by mike_ekim June 15, 2010 7:45 AM PDT
10 years ago it could be said that " Pretty much everyone who wants to maintain a digital music library already has one and it's on CD." 10 years ago it was Cassette, before that it was 8-track or LP.

Don't forget that BlueRay will never sell because people have DVDs, and that DVDs won't sell ebcause people have VHS.

There are many 15 year olds that don't have big music libraries today, in 10 years many of them might have their music on a droid device.
by alangerow June 22, 2010 2:59 PM PDT
iTunes was one of the main reasons why I wanted to get an Android over keeping my iPhone. My wife hasn't updated or backed-up her iPhone in months because of having to deal with iTunes issues; we're getting her an HTC Aria shortly.

Nobody I personally know uses iTunes because they like it. And most of them don't buy their music from iTunes and have it all in DRM-free MP3 files, so ditching iTunes is a non-issue. Anyone stupid enough to have invested their music money into iTunes DRM music deserves to be stuck with iTunes. Everyone else has choice.

And I preferred using my iPod for music over my iPhone. I hate the iPhone's music player. It's passably functional at best. Though since getting an Android powered Nexus One, I prefer to listen to last.fm or Pandora; been enjoying listening to them in the background while doing other tasks on the phone for months now.
by hawkeye_a June 14, 2010 10:02 PM PDT
As long as:
-i do not have to subscribe to my music
-i can download the music for local use
-have better rights than what iTunes Music Store offers
-be internationally available
-works flawlessly with iTunes, iPods, iPhones and iPads.

I'm all for a competitor to the iTunes Music Store, but i wont support if it offers a worse product/experience, and needs me to jump through hoops.

I wanted to try out Amazon MP3, but when i did try and use it, i was informed i was not in a supported region. No problem here..i took my business elsewhere.... namely, the iTunes Music Store. I'm still waiting for a decent alternative.
Reply to this comment 1 person likes this comment
by Ray192 June 14, 2010 11:25 PM PDT
I still can't figure out why people actually use itunes. It's a terrible music player. At least on PC.

Then again, I haven't bought music in quite a long while.
Reply to this comment
by ckh1272 June 15, 2010 12:48 AM PDT
Compared to what exactly? It works just fine on my other laptop (Win system) and runs the same as my Mac version. Only difference is that it does open up slower on the Windows side than the Mac side and those systems have similar specs. Everyone talks about what a dog iTunes is but they never elaborate on the specifics. Could iTunes use a little slimming down? Yes. Is it as bad as some people make it out to be? I really don't think so but it obviously varies from user to user.
2 people like this comment
by Ray192 June 15, 2010 11:26 AM PDT
Really? ITunes frequently crashed/froze on my Lenovo T60, especially when dealing with the ipod. After using itunes for a month or two, I switched over to another 3rd party ipod interface and never looked back. And it's a resource hog to boot (it also tried to make me download safari with the update, but that's a minor complaint). Winamp is much better, and I don't even like winamp that much.
by Hike_Every_Day June 14, 2010 11:36 PM PDT
How long will it be until Apple starts offering search on all the devices?
Reply to this comment
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About Media Maverick

In covering digital media for CNET News, Greg Sandoval has broken stories on Apple, Microsoft, YouTube, The Pirate Bay, and the digital efforts of the major music labels and Hollywood studios. Before that, in his first tour with CNET News, he covered e-commerce during the dot-com boom and bust. A dogged investigative reporter, he began his journalism career at the Los Angeles Times and followed that with a short TV stint at The E! True Hollywood Story. Later, he spent three years as a staff writer for The Washington Post. Greg is an alumnus of USC and was raised in Chatsworth, California, which is distinguishable only for being the porn capital of the world.

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