All the signs are pointing to another huge cash influx about to enter the music streaming business. Rumors are that Microsoft is sniffing around to what is possible, even after their failed attempt with Zune. Spotify is making waves with their streaming service and Myspace is claiming to have their numbers rising due to "significant" improvements to their music player. Not sure if Myspace realizes it or not, but their interface still is way too busy. If Myspace were to die off or completely, revamp their approach with a whole new influx of ideas and potentially a new name, maybe they could shed their old skin and start anew. Sorry Justin Timberlake, not even your amazing SNL appearances can save your investment in Myspace, unless it has a game changing overhaul.
Is Pandora a patsy for the major labels? What about Last.FM, Rdio and the litany of others who have provided streaming services? Do any of them have a solid presence or unique aspect which we as music fans crave?
We honestly think this is the best thing for bands as a whole. Competition breeds a better system and forget your big box package stores for buying music anymore. Its all going to be digital or directly to fans from the bands.
"Three months after launching, Google Music hasn't lived up to expectations, CNET has learned. Google's managers have told counterparts at the labels that customer
adoption and revenue are below what they expected, according to multiple
sources with knowledge of the talks.
Google Music has been live for barely a full quarter, so nobody is
panicking. Google has yet to throw the full force of its marketing
muscle behind the service, and managers have told the record companies
that they are trying to correct certain issues. Still, the numbers are
low enough for some in the music sector to be concerned, the sources
said.
A Google representative declined to comment.
Google Music was supposed to be a music powerhouse. As a companion
service to Android-powered mobile devices, the service has a massive
potential user base. At the time of Google Music's November launch,
there were more than 200 million activated Android phones and
tablets.
If Google managed to convert just 10 percent of those device owners, it
would mean 20 million customers. Google Music sells downloads, and also
streams songs to users who store their music libraries on the company's
servers. The service sells tracks from a host of indie labels as well as
three of the four top major record companies. Google has yet to license
tracks from Warner Music Group.
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| Google campus in the bay area |
Google managers have told label executives that the service will get a
boost once Google implements its hardware strategy, the sources said.
Google plans to start competing against Apple by building an array of
consumer devices.
Two weeks ago, The Wall Street Journal reported that Google is building a wireless entertainment system that will stream music throughout the home.
The troubled start for Google Music comes as the music sector shifts
attention away from downloads and onto subscription services, such as
Spotify, Rhapsody, and Rdio. These companies sell consumers access to
huge pools of songs for a monthly fee.
Handset manufacturers and network providers, such as Research In Motion, T-Mobile, Cricket, and MetroPCS have bolstered their music offerings.
Just last week, CNET reported that Microsoft has held talks with some of the record companies about creating a new digital music store that would serve owners of the
Xbox
gaming console as well as buyers of an upcoming Windows-based phone. The
parties have discussed the possibility of streaming music as well as
selling downloads.
Phones are important to the labels. They see a future where subscription
services offer unlimited access to music and the fees are wrapped into
phone bills. The thinking here is that this will make the consumer's
buying experience much more painless.
So is Google Music out of step with current music tastes?
The record companies didn't think so when Google first approached them
in 2010. The recording sector couldn't be happier that a company with
Google's money and marketing might would be taking on iTunes. Because of
Apple's domination of music sales, Apple has been able at times to
dictate terms to the labels.
Despite all the excitement surrounding subscription services, it remains to be seen whether these services are very profitable.
The music industry is still too much in flux to say who the winners or losers are"
