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Google Shies Away from Digital Music Sales

mytrip writes to tell us that Google has announced that they will not be getting in on the digital music sales market anytime soon. Analysts have been predicting the response of a "GTunes" service for months but Chris Sacca, head of business development at Google, dispelled those rumors in a recent address at the annual National Association of Recording Merchandisers conference in Florida. Sacca emphasized the need for "ecosystem development" and partnerships within the industry stating that they were the "big opportunity" in the digital music business.

8 of 112 comments (clear)

  1. Re:I know why google doesn't want in! by ronkronk · · Score: 4, Informative

    Stop wasting time!
    ext:mp3

  2. Re:Google doesn't sell content by Null+Nihils · · Score: 2, Informative
    You mean google hasn't been taking ads from commercial 3rd parties and redistributing them on other websites for profit?

    That's called selling advertising (to commercial customers), it has nothing to do with selling content to consumers, retail-style.
  3. Re:No wonder Google doesn't want in. by generic-man · · Score: 2, Informative

    Wrong direction. Payola means the record companies pay radio stations for preferential treatment to play the record companies' music. Licensing means the radio stations pay ASCAP/BMI for the right to broadcast ASCAP/BMI members' music. Payola is illegal; licensing is legal.

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  4. Re:No wonder Google doesn't want in. by Reaperducer · · Score: 5, Informative

    You are confusing two separate issues.

    The fact remains (and this is something that many internet bitcasters can't wrap their brains around) that the average radio station pays millions of dollars each year to play music. Even if you're a crappy three kilowatt FM in some medium market, your licensing fee is going to run about a million dollars a year (Could have changed, it's been a few years since I was involved in this).

    People on the internet like to pretend that radio stations get their music for free. Yes, the record companies send them free CDs, but the radio stations still have to pay for playing them on the air. And in many cases, even small stations don't rely on free CDs from the record companies any more. They subscribe to libraries of what are essentially mix CDs full of music tailored to their audience. That's another service they pay for.

    I got out of radio several years ago, so I can only imagine what internet delivery of playlists has done to all of this. But one thing I'm sure of -- radio stations aren't playing music for free.

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  5. Re:How far will Google go? by Null+Nihils · · Score: 2, Informative
    Is it just me, or does Google seem to be overextending itself?

    On the contrary, they stick fairly close to their core competency compared to certain other tech companies. Plus, I'd hardly call what they're doing "overextending" when they have a $100 billion market capitalization.

    That they deny being enticed by the idea of selling music online is a good sign IMO, it means they don't need to try to grab a piece of every pie that has anything to do with the word "Internet".
  6. Re:The stupid portal idea by generic-man · · Score: 2, Informative
    I always thought their "main business focus" was selling advertising. But it turns out that they actually have three main areas of interest. From their quarterly report:

    Overview

    Google is a global technology leader focused on improving the ways people connect with information. Our innovations in web search and advertising have made our web site a top Internet destination and our brand one of the most recognized in the world. Our mission is to organize the world's information and make it universally accessible and useful. We serve three primary constituencies:

      Users. We provide users with products and services that enable people to more quickly and easily find, create and organize information that is useful to them.

      Advertisers. We provide advertisers our Google AdWords program, an auction-based advertising program that enables them to deliver relevant ads targeted to search results or web content. Our AdWords program provides advertisers with a cost-effective way to deliver ads to customers across Google sites and through the Google Network under our AdSense program.

      Web sites. We provide members of our Google Network our Google AdSense program, which allows these members to deliver AdWords ads that are relevant to the search results or content on their web sites. We share most of the fees these ads generate with our Google Network members-creating an important revenue stream for them.


    Thank you for an entertaining thread. I will not read any further USENET-quoted replies. (Why is it that letter-writers never have to insert large chunks of the letter to which they are replying, implying that they're carrying on a conversation in real time? Seems a little crazy to me.)
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  7. Re:Google doesn't sell content by wateriestfire · · Score: 1, Informative

    It is almost as if you didn't hear about the Google Store, You can buy google lava lamps, google gum, google shirts, yep http://www.googlestore.com/

  8. Re:I know why google doesn't want in! by Anonymous Coward · · Score: 2, Informative

    Google doesn't index them anymore. Afaics they stopped over a year ago. I've done an experiment creating multiple sites with good content and uniquely keyworded .mp3 files as immediate leaf nodes. (The files are legal content owned by myself) 9 months later, nothing, nada, zitch, completely and absolutely jack on Google.

    The logs show the Google spider hitting them, scores of times.

    I leave the speculation to the reader, but those are the facts.

    More than 70 or 80% of all the ext:mp3 references that Google does link to are dead.