Google In Talks to Create Streaming Music Service


Google is currently in negotiations with major music labels over licensing fees and the prospect of creating a streaming music service comparable to Spotify which will offer free unlimited access to songs which will be supported by advertising.[1. Charles Cooper, Google in talks with labels over streaming music service, (Feb. 25, 2013).] These negotiations arose out of the thought of turing YouTube into subscription based platform. [2. Billboard Staff, Google In Talks For Music Streaming Service, (Feb. 25, 2013).] “The labels are in discussions with Google about renewing deals that pay music companies a fee whenever one of their copyrighted songs is used in a YouTube video.'[3. Dawn C. Chmielewski, Google Streaming Music Service,,0,1955138.story (Feb. 25, 2013).] YouTube has become one of the most visited websites for music fans looking to hear their favorite song. YouTube’s importance to the music industry has now been realized when Billboard announced that “it would incorporate Nielsen’s YouTube streaming data into its chart tally.'[4. Billboard Staff, Supra, Note 2.] “A popular YouTube video can catapult a song to the top of the music charts, as was the case with the Harlem Shake,” which rose to number 1 of Billboard’s Hot 100.[5. Id.]

In 2011, Google launched Google Music which allows users to download and store music with the capability of streaming to wireless devices. However, if Google is able to negotiate with the top music labels, this will place Google in direct competition with other services, such as Pandora, Spotify, and possibly Apple and Amazon.[6. Id.]

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