Will Google Music Compete with iTunes and Subscription Services?

  • Google Music, a download and streaming service serving 200 million Android users, has had a disappointing start. The service was intended to compete with Apple’s iTunes, but so far has attracted just 10 percent of potential users.
  • Google’s managers are telling music companies that they expect more interest when the company starts building its own consumer devices. It is rumored to be building a wireless entertainment system.
  • However, competition may continue coming from a variety of areas. Microsoft, for example, “has held talks with some of the record companies about creating a new digital music store that would serve owners of the Xbox gaming console as well as buyers of an upcoming Windows-based phone. The parties have discussed the possibility of streaming music as well as selling downloads,” reports CNET.
  • Additionally, download services may be out of step today as subscription services such as Spotify, Rhapsody and Rdio gain more attention.

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