Rumour: Google “Disgusted” With Record Labels

Google’s attempts to negotiate with music labels in order to licence music for their upcoming Google Music service has been claimed to have left Google “disgusted” with the labels based on their greed or exorbitant terms they want placed on the music – and, in a new twist, Google may decide to launch its much-anticipated music service without label licenses.

Most frustrating of the labels is, reportedly, Warner Music Group. Those close to the negotiations claim that Warner Music Group is committed to a cloud-based strategy and Michael Nash,Warner Music Group’s executive vice president, of digital strategy and business development reportedly wants Google to charge users $30 a year to visit the cloud. Google, however, wants users to be able to store the first 500 tracks for free; and thereby combine a free and paid model like many of their other services, according to sources.

The rumours come from The Music Void, a blog solely focused on reporting the latest in the world of Music, who state that Google may be ready to “go Amazon” on the record labels and shelve their music aspirations altogether.

If Music Void’s rumour proves accurate, this isn’t the first time Warner has clashed with a tech company. Previously, they caused a major headache for Spotify in launching a freemium service in the United States, refusing to make a clear-cut deal for fear that the model would compete with paid services such as Rhapsody; despite the fact Spotify was already closing in on a deal with Universal, one of their biggest rivals. Google have not publicly commented on the matter.

Google’s music ambitions have fuelled feverish speculation ever since a supposed “test version” of the Android Market was allegedly leaked, inadvertently confirming the release of a Google music platform, termed Google Music. Two days ago, we reported that Google had purchased the Toronto-based music syncing service PushLife, an acquisition that may prove instrumental to its musical strategy.

It is important to remember that these are all still rumours, and should be taken with a pinch of salt until more information is known – although any Techie knows that rumours in tech DO turn out to be true in 90% of cases. Still, your thoughts on the matter are always encouraged!

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Acknowledgements: The Music Void (http://www.themusicvo more...
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One Response

  1. The label may be disgusting, but how many plays would it take in a month, on a service like Spotify, for the artist to earn minimum wage from it? I heard a figure somewhere around 4,000,000…