Tuesday, June 28, 2011

Google Would Have Paid More Than $100 Million to Major Labels for Licenses


Google has faced many critical reviews by analysts regarding its new Google Music Beta service, the new cloud-based locker which released by Google at its Google I/O event few months back. The reviews are so skeptical mostly because the lack of the facility for the users to purchase online music and stream seamlessly without having to upload their own library. Hence, consequently Google is now even ready to offer unavoidable offers of large sum of money to get the required licenses. It has been reported by Bloomberg Businessweek, that Google is already prepared to give out as much as $100 million to all four major labels, without any bitter condition, to acquire the licenses. But despite even this offer, the music labels did not negotiation due to “the music industry’s concern that search results in Google and YouTube often point to pirated music.”
Image representing Google as depicted in Crunc...Image via CrunchBase
It was known since day one that Google was facing serious troubles while getting the green signal from music labels, but it has now been disclosed for the first time that piracy is the main reason behind it. Further it was stated that Google is now actually ‘fed up’ of trying to convince the labels, above all WMG, as it was asking Google to charge the users with an annual fee of $30 for the cloud service. Whereas, Google had intended that, and was unmoved on the matter, users should be able to check out the new service for free with at least 500 tracks stored for free at first.

Consequently, Google launched its Google Music Beta service without acquiring the licenses and a list of almost 20,000 songs stored on the service initially for free. This in practical meant that users will have to upload any music content they want in their cloud-based locker, which is interpreted as a lengthy process. This process could have been made much easier, if Google had acquired the licenses, and allowed the users to buy new music directly from the Cloud service to keep it three.
Market analysts state that Google is late, if it was going to launch the cloud-based music service without licenses; it should have done earlier like Amazon. Moreover, now if Apple releases its cloud service, probably titled iCloud, offering something that Google does not offer it will probably snatch Google’s market easily. Apple is expected to release or announce its service at the developer’s conference in June.
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