According to a recent piece in Financial Times, the California search engine giant is poised to launch a new Google music streaming service. The service will likely offer multiple subscription tiers in addition to a free (most likely ad-supported) version as well. Judging from the company’s history, Google will go big and there’s no telling what sort of impact this new Google music streaming service will have on established providers such as Spotify and Pandora Internet Radio.
This new service would be an extension of Google’s already music-heavy product offerings. Their video streaming service (YouTube) already provides thousands of hours of music videos on demand and Google has also launched music download services in Europe and the United States (since last
November). However, it may not be an easy transition.
While Google does already have working partnerships with over 1,000 different entities in the music industry (thanks to deals worked out for the Android marketplace) the RIAA has been taking a hard line against the search engine giant in the recent past. Analysts at The Next Web think the bad blood between the two entities may lead to a sizeable speed bump for Google.
Google Music Streaming Would Be a Huge Financial Boom
If these secretive talks between the iconic California company and record labels do go through it would be a huge boom for Google. The company makes 95% of its revenue through advertisements. Providing a larger stream of income from actual products would help alleviate any fluctuations and give the company more capital to reinvest in ambitious projects like Google Glass.
And it’s an extremely ripe market to tap into. Reports show that in just the first six months of last year, streaming accounted for $468 million dollars worldwide. Granted, that figure includes music and video services such as Netflix but there’s still plenty of money to be made.
Financial Times analysts say it would be second nature for any Google music streaming service to be embeded in already existing products such as the Google Chromebooks or Android powered phones. This integration would mimic what Google’s leading competitor (Apple) has already done with just about everything they’ve ever created. This integration would also give Google a leg up of already existing non-Apple companies who have struggled to couple their streaming services with any sort of exclusivity.
If Google music streaming does come to pass, I can see a future filled with overpriced Google brand headphones and wireless speakers with rap star names attached for good measure.
Source for Info: Financial Times