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.