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Digital
Google Music under-performing
By CMU Editorial | Published on Friday 24 February 2012
Google Music is not going quite as well as the web giant expected, according to C-Net, and while the web firm isn’t too bothered just yet, it’s causing concern amongst some music companies. Google execs have reportedly told their label contacts that both customer sign up and revenue for the so far US-only Google Music service have been lower than expected, despite all the hype that surrounded the web firm’s first big play in the download market.
That said, C-Net points out that Google is yet to fully utilise the marketing power its other platforms are capable of delivering for the fledging music service, plus execs at the web company reckon Google Music will truly take off once it moves into the device space, most likely via its acquisition of Motorola.
Nevertheless, C-Net’s sources say, “the numbers are low enough for some in the music sector to be concerned”. Some wonder if Google’s timing was off, launching a download-based service just when streaming music is the flavour of the month (though, of course, download platforms still dominate in terms of market share), and whether more effort should have been made in integrating the new music offer with YouTube, which is arguably the biggest streaming music service on the web.
Others, though, note that the integration between Google’s music service and its Android mobile operating system – a real plus – is yet to be fully realised, partly because the mobile networks and handset makers are all going through another phase of launching their own music offers. Once Google launches properly into the hardware market itself, presumably giving Google Music prime place on its devices, then that’s when sizable uptake may be seen.
