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Google Music Store Inches Closer?

smallguy78 writes "Forbes is once again reporting on Google plans to launch its own competitor to iTunes, a Google music store. From the article: 'The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services.'" We have touched on this subject previously. This most recent report would seem to indicate the launch will happen sooner rather than later.

12 of 282 comments (clear)

  1. Dynamic Pricing Based on Plays by RunFatBoy.net · · Score: 4, Interesting

    If Google launched their own player along with the store, I could envision a pricing model that based the price of the songs on the number of plays it was receiving from its purchasers.

    Over time, the cost of this track would become less and less and all of the "filler" tracks would slide fairly rapidly.

    Jim http://www.runfatboy.net/ -- Exercise for the rest of us.

    1. Re:Dynamic Pricing Based on Plays by Anonymous Coward · · Score: 1, Interesting

      Should popular tracks cost more or less?

      On one hand, they should cost more, since there is more demand for them, and the market thinks they are superior, and hence they are more valuable.

      On the other hand, maybe they should cost less, since the track is selling in volume, and the die-hard fans have already bought the track so there needs to be an incentive to get others to buy.

      This is the problem with applying market-based approaches where supply is infinite. There is no way to regulate the prices by traditional means. Arguments could be made either way. The music industry seems to be leaning towards having popular tracks be more expensive, as there will be people who will buy them whatever the cost since they are "cool must-have songs". However, this will inevitably reduce supply, since there will be many people who will not pay the premium.

      In this new marketplace with infinite supply, I think that real experiments need to be conducted to see what price actually maximizes total revenue. My personal belief is that charging more for popular music will achieve this. There is a large core of consumers who only buy "Top 40" albums or singles. No matter how low prices are set, they will probably only buy a fixed quantity of music (the more popular content). On the other hand, there are consumers who have more eclectic tastes, and would likely spend a lot more if tracks were cheaper.

      By making popular tracks more expensive, the "mainstream" customer base will spend a large amount of money on the small number of tracks they demand, while the customers with more varied tastes will be free to download a large quantity of more eclectic music. This will raise global revenues. The problem with this is that you end up with a small number of tracks bringing in the lion's share of revenue, with the less popular tracks each earning much less.

      If popular tracks were less expensive, the "mainstream" customer base would almost certainly still only buy the "Top 40" music but spend a lot less doing so, while music aficionados would be turned off by the higher price of less popular tracks. This will reduce global revenues. It would probably mean that less popular tracks would bring in a greater share of revenue, but it would be a larger slice of a smaller pie.

      So in the first instance we have higher global revenue, but decreased revenues for non-mainstream music. In the second instance, we have reduced revenue, but that revenue is shared more equally among tracks.

      Maybe the best situation is just to have fixed-price tracks. The question is then what price to fix them at.

  2. what format? by gEvil+(beta) · · Score: 4, Interesting

    Of course there's no mention of file format. Since the audio players out there generally play some combination of MP3, AAC, and WMA, it's only reasonable to assume that the store will sell in one of those formats. Since we know it will need DRM to make the labels happy, that pretty much narrows it down to PlaysForSure WMA. If that's the case, there're already plenty of competitors out there. What will make this store different from Rhapsody, Yahoo, Napsters, etc?

    --
    This guy's the limit!
  3. Only once piece of the picture... by webword · · Score: 2, Interesting

    How does the music store interact with players, especially the iPod?

    Can users easily manage their music libraries?

    What kind of file formats will be available?

    Overall, the article makes it sound like Google is very focused on the music industry. I understand this to a point, but Google's users won't be too happy if the music industry seems like it is in too much control. Users are willing to pay, but they expect a certain level of freedom and choice. The user experience is at least as crucial as buy in from the music industry. Or, in other words, Google needs to consider both supply and demand.

  4. I don't think so by Drog · · Score: 2, Interesting

    I think most consumers will simply see this as another place where you can download music. The prices and file formats will be different, but that's about it.

    --

    Looking for political forums? Check out "The World Forum".

  5. Re:Google's first serious misstep? by BewireNomali · · Score: 4, Interesting

    what is it with the childlike obsession wih the "do no evil" credo? It's kind of absurd.

    if you have a gmail account, they're probably doing evil with your consumer preferences right now.

    re: a music store. Oooooooooooh, a shiny new music store. How innovative, Google. They're like eight years too late with that.

    It's a misstep for google to be opening a music store.

    As of yet, they don't have a million subscribers for gmail. if they do, they've passed that threshold so recently that there is little info on it. they haven't passed a million subscribers to gtalk either. they haven't shown any uptake for any of their products other than google, which means the general audience is either unaware of their consumer efforts and/or uninterested.

    I've used Microsoft Live ... and it's a pretty good integrated suite, a bit better than google offers... already, and Live is in true beta - like less than a year beta as opposed to fifth year senior beta.

    looking at the world through google glasses is to obscure the reality. YouTube is eating Google Video's lunch. they only hold the search engine market - and deeper pocket will continue to assial them from all sides.

    In your parlance, they'll need to do boatloads of evil just to SURVIVE.

    Google = fairy tales for adults. They're just some guys who turned a graduate project into some cash folks. Relax.

    --
    un burrito me trampeó.
  6. I hope that Google does this, and does so with... by zappepcs · · Score: 3, Interesting

    I hope that Google does this, and does so with the same standards and aplomb that they have used for all of the other Google services. I like Google, not because of the do no evil clause, but because their services work, they work well, and the costs are... well, affordable.

    If MS or the RIAA could find a company that works as well as ITMS or that works better than ITMS, they would have done so. Clearly, they are in need of a partner company that has both the technology know-how and the backbone to make it work. Google definitely fits in that category. I hope that if such a bargain is struck, that the *AA finds themselves holding on for dear life to the tail of a very BIG tiger....

  7. Re:Google's first serious misstep? by Anonymous Coward · · Score: 1, Interesting

    I have a comment though. I am actually not not happy with the iTunes concept of single pricing. I think 1$ per song is waayyyy too expensive for a song. Second, I don't give a damn about contemporary mainstream music. My preferences are better served by a variable price store. If you're into mainstream and actually think that "A" song is worth 1$... feel free to feed the beast. But at that's the kind of price per song that I would only pay to live performers, not recording. Wheter they are street performers, or theatre performers, I'm willing to pay them more than a lousy recording.

  8. Re:Google's first serious misstep? by adinb · · Score: 3, Interesting

    You mean like http://www.savethemusicfan.com/, founded by the Nettwerk Music Group CEO Terry McBride?

    With artists like Sarah McLachlan, Delerium, BT, Avril Lavigne, Bare Naked Ladies, and MC Lars, they're not exactly a small label. (But no, they're not Sony-BMG either)

    And they are doing their absolute best to give the RIAA the middle finger--not only by founding this not-for-profit (and picking up families' RIAA legal costs and any possible fines), but by selling decent quality NON-DRM'ed music at their own download store.

    --
    Moderation is for Monks!
  9. Re:Google's first serious misstep? by n8_f · · Score: 2, Interesting
    But Google will only ever have the same leverage that Apple has over the Majors.

    No, they will both have less. This is what the RIAA wants, at least two significant players that they can play off of each other. Apple won't agree to higher prices? Then the RIAA can take their ball and go home, because they no longer need Apple, they can sell everything through Google. Google won't raise prices higher than Apple? I guess Apple will get all of the business. This is the same thing they've done with copyright law.
    "Oh, now the European Union has longer copyrights. The U.S. has to have parity."
    "Oh, now the U.S. has longer copyrights. The E.U. has to have parity."
    Oh look, now coprights are the life of the creator plus 100 years. Etc., etc.

    Basically, we need a Good Guy (TM) with deep pockets to raise a middle finger to the majors.

    That's Apple. Remember when the RIAA wanted to raise prices? Apple stood their ground and took the battle public. They've got the least amount of DRM that the RIAA will allow. This does benefit Apple due to lock-in, but FairPlay is the only leverage Apple has over the RIAA. If they open that up, the RIAA no longer needs Apple. This is the problem with our current media system. As long as there is no competition amongst publishers, than competition amongst distributors doesn't benefit consumers, only publishers. The real problem is that publishers aren't competing for consumers' entertainment dollars. Until they do, competing at the distributor level is pointless and only reinforces the current system by providing even larger profits to publishers.

  10. Yes But by Queer+Boy · · Score: 3, Interesting
    Will it play on iPod?

    This is sort of a delicious irony because I remember in the 90's the big question about any computer system was "Will it run MS Office?"

    --
    Not since Marie-Antoinette played milkmaid has looking simple and honest been so fake and complicated.
  11. Re:Google's first serious misstep? by F_Scentura · · Score: 2, Interesting

    "It's the same dogmatism that strikes down ID swiftly and flames anyone who espouse religious affiliation to oblivion"

    It's sad that the Creationists still can't conceive that evolutionary Christians are the majority of believers worldwide, and even in the United States. They lack the critical thinking skills to delineate "God did it and I don't question him!" from "God did it, and this is *how*!"