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3 Reasons Labels Will Say Yes To Google Music

image from janeheller.mlblogs.com Google is testing its new cloud music service as labels continue to drag their feet over licencing. Rightsholders are also talking to iTune's about a similar if more restricted service. But there are 3 factors that will force even the most stubborn music executive to say yes to Google Music:

FACT #1: They Need Google – The recorded music industry knows it needs a serious competitor to diminish iTune's dominated position, and Google is by far their best candidate.

FACT #2: Consumers Want Cloud Music – Whatever the legal and financial underpinnings of rightsholder objections to music in the cloud, the consumer has already spoken. Music on YouTube is effectively a free cloud service and fans love it. People want to consume music when and where they want it.

FACT #3: Selling Music Is More Profitable Than Streaming It – Currently, consumers get "legal" access to music in more places by streaming it than they do by buying it. Cloud music storage would change that and help make music worth paying for.

Bruce Houghton on 03/25/2011 in Streaming | Permalink | Comments (4)
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4 Comments

  1. Bruce, I agree with everything you said, but you act as if the labels use logic in their decisions. The last 15 or so years has proven the contrary.
    It’s a good thing Google has a lot of cash, they’re gonna need it to make this happen.

  3. I’m suspicious of the assumption that the value placed on ownership is going to trump on-demand streaming from the consumer’s point of view. Netflix is proving that if the service is amazing and dependable, a lot of people don’t care about ownership. I think the cat is out of the bag in regards to streaming. If Google music launches, it’s not a given that it will substantially decrease music streaming on YouTube.

  4. The people that labels (and Google) feel will use a pay-for-use cloud-based service are the same people who have already learned how to (and are comfortable with) torrent sites and free (illegal) downloading.
    Kinda like advertising DirectTV to people in neighborhoods who have been splicing cable wires for years. Too little too late I think.

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