February 26, 2013
Google is reportedly in talks with major music labels about the possibility of starting a music streaming service. It is expected that such a service would offer a subscription-based model along with free unlimited access to songs supported by ads, much the same as models already provided by streaming services such as Spotify and Deezer. Google started a music download store in 2011.
“When your market cap is north of $263 billion and the company’s stock price is hovering around the $800 level, the prevailing question du jour becomes ‘well, why not?’” writes CNET. “And like Apple, Google can leverage its tablets and smartphones as well as its Android operating system to make a go of it.”
This discussion comes at an interesting time for Google and the music industry, notes the article. “It must be fascinating to be a fly on the wall listening to the negotiations as they take place against the background of the music industry’s chief lobbying group accusing Google of failing to crack down on pirate music sites.”
According to the Recording Industry Association of America (RIAA), Google’s recent efforts to disrupt successful search for pirated materials via its search engine has not been working.