There are numerous reports that Google is about to launch a music service.  Whether the rumours have foundation or not I think it is worth reflecting on what role Google could play in digital music and their various assets.  Here are some initial thoughts:

 

  • Google is already a major player in the online music space via YouTube (in Europe, the home of Spotify, more people watch music video online than listen to streaming music)
  • Google shouldn’t (and probably won’t) try to be an ‘iTunes killer’.  The bottom line is that the iTunes / iPod / iPhone ecosystem is successful within that niche, but it is just that, a niche.  The 99 cents download model isn’t a mass market proposition
  • Google has its Android asset to leverage, potentially ensuring it is a truly cross platform music play
  • Google is in a unique position to target music demand at the earliest possible stage i.e. when consumers start searching for music

 

The last point is where I think Google’s core value proposition for the music industry comes in.  Apple can do little about iPod owners downloading from BitTorrent (and our survey data shows they are very likely to do so).  But Google on the other hand can.  Just imagine if when a consumer searches for a song, alongside all of those Torrent results is a heavily integrated Google music offering.

 

Whether or not there is any substance in the current rumours, Google could play a major role in online music.  What will be at front of mind for them though will be learning their lessons from YouTube, i.e. not hemorrhaging cash and not getting bogged down in rights holder spats.  If they have the appetite for it Google could bring something new and incremental to the digital music equation.