Google talks to Spotify to power music service

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  • appus
    • Jan 2011
    • 4377

    Google talks to Spotify to power music service

    Rather than launch it's own digital music service, Google is considering whether to partner with an existing service, including Spotify, to power Google Music.

    According to a source with knowledge of the talks, Google has told the labels that it has begun discussions with Spotify in recent weeks but no agreement is in place. Spotify is the European streaming-music service that also has ambitions of launching in the United States. The talks with Google and Spotify have coincided with an inability by Google to reach agreements with the four top record labels on licensing a cloud-music service, the source told CNET. Google had originally hoped to launch a new music service by the end of the year and then again in March, but now it's indefinite on when it might debut.

    Google and Apple have been racing to roll out cloud music services for a year. They both have spoken to record label execs about enabling users to upload their existing music libraries onto the companies' servers and access their tunes via Web-connected devices. The pitch to consumers is that they would never lose their music again to a hard-drive meltdown and could access their libraries from anywhere in the world they could connect to the Web.

    The cloud is supposed to be the next format for music distribution. Plenty of people are skeptical.

    Apple is said to be closing in. Reuters reported that Apple has completed the work on its service and All Things Digital reported that Apple has signed licensing deals with two labels.

    Over at Google, the search company's music service is also ready to launch technologically speaking.. CNET reported that the company began testing the service internally. Nonetheless, Google has in the past explored the option of entering the cloud-music category through an acquisition or partnership. TechCrunch reported in October that Google had talked to Spotify about an acquisition.

    Google also has a history of acquiring companies to help them compete in a category where their own product is lagging. Acquiring YouTube in 2006 is one example.

    The issue of Google or Apple being first is sort of moot now. Amazon beat them both. Last month, the Web retailer launched a service that offers users the ability to store music, videos, e-books and all digital media to its servers. The service won't offer all the features that Apple and Google are hoping to offer because Amazon launched without acquiring licenses.

    It's very doubtful that Google or Apple could adopt Amazon's strategy and launch without licenses. Since launching iTunes, Apple's has a history of quarreling with the labels but has never seriously challenged them on the question of copyright. Google is under government scrutiny over whether the company's search engine enables piracy.

    Finally, there's a chance that even though Apple seems to have the edge for second place over Google, it still has two more labels to sign. That could take awhile as Spotify knows. Similar to Apple's situation, the European music company has reportedly signed licensing agreements with two of the labels. That was months ago.





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