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    Google music launch: the implications

    LONDON, UK: The immediate impact of the launch this week of Google's music beta service will most likely put an end to licensing negotiations between Google and the major record companies as well as most other companies looking to get into the locker space.
    Google music launch: the implications

    Amazon's move into the music locker space was thought by most to be risky but with Google launching something similar it suggests to all concerned that this level of locker service doesn't need a license. Only a court case will determine if that is correct and it is now up to the major record companies to make the decision whether legal clarity is required.

    Massive implications

    The implications surrounding the launch are massive. Amazon launching on its own was a risk, but having Google alongside it swings the balance of power in favour of the service providers and away from the record companies. We are no nearer finding out if a license is required for this sort of service but that isn't the point. Google has claimed that it tried to get a license and was denied by the major record companies. Google can only be seen as a defender of what consumers deserve and if the major record companies challenge this it could turn out to be a PR disaster for them.

    Without being too dramatic, Google has effectively said to the record companies, sue us if you dare. The details of the licensing negotiations will probably never be known for sure but at the moment Google has come out of this best. The big question is what do the record companies do now? They have wanted a challenger to the dominance of iTunes for a long time and although the Google launch only goes part of the way to providing this challenge, Google remains one of a small number of companies big enough to challenge iTunes.

    The next few months will determine if Google will be allowed to remain a challenger.

    Source: Informa Telecoms & Media

    Informa Telecoms & Media aims to deliver strategic insight founded on global market data and primary research. The company works in partnership with its clients, informing their decision-making with practical services supported by analysts.

    The company conducts primary and secondary research on the latest trends impacting the mobile communications, fixed communications and TV sectors, on a global basis. ITM's market intelligence services - World Cellular Information Service (WCIS), World Broadband Information Service (WBIS) and the Intelligence Centre - to give clients access to market forecasts and key performance indicators (KPIs), as well as detailed analysis and exploration of trends.

    Go to: http://www.informatm.com

    About Simon Dyson

    Simon Dyson is senior music analyst at Informa Telecoms & Media.
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