Google Launching Music Service Without Labels
fysdt writes "Google Inc is set to launch an online music locker service to allow users to store and access their songs wherever they are, similar to one launched by Amazon.com Inc in March. And like the Amazon Cloud Drive player, Google music service is being introduced on Tuesday without any prior licensing deals with major music labels, following months of fruitless negotiations."
You're overestimating the music industry; while I'm sure that no one wants a long, drawn out lawsuit, Google sees about twice as much revenue than the entire recording industry*. (Plus, they've got a business model that doesn't revolve around suing their users.) I'm not sure that the RIAA's lawyers would be too eager to sue Google; it's easy to arm-twist a $2000 settlement out of a college kid, and if one or two of them do end up going to court, the RIAA can certainly outlast any private individual. However, suing someone bigger than you, who has an experienced in-house legal team, is a whole different ballgame.
* Gotta back up my claims. For the sake of this argument, "the record industry" doesn't contain indie labels; they are too fragmented to coordinate their power. That leaves us with:
Sony Music Entertainment: $1.33 billion
Universal Music Group: $6.14 billion
Warner Music Group: $3.49 billion
EMI: $1.65 billion
versus
Google: $29.32 billion
(all values USD, anual revenue, as listed on Wikipedia)
ever see a tv commercial for a dvd movie:
"own it on dvd today!"
their own words. in plain english.
(I rest my case)
--
"It is now safe to switch off your computer."