Google Is Going Into The Free Music Business – In China

February 9, 2008


I read today this Wallstreet Journal article

“Two years after Google Inc. began a big push in China, Inc. continues to dominate the country’s Internet search market, thanks in significant part to a controversial and legally risky offering: searches for free, unlicensed music downloads.
Now, Google is preparing a counterstrike, according to people close to the situation. The U.S. search giant is in the late planning stages of a joint venture with a Chinese online music company that would permit it to provide free — licensed — music downloads in China. “

Searching for music is a big traffic issue for Baidu– at least 7% of its total.

Actually the news about the new Google service are not really concrete … it`s said, that it is a cooperation with… but Google makes no comment… what will it be look like?… fully legal downloads? …. we don`t know anything about the business model yet… partner in the music industry…

Ad supported music services can work… there is a lot of money in it and Google is the best player in the online ad business…

And as everything Google is doing right now, it`s serious.

China is definitely the right market to start a free music service. A country where piracy rules already for years, a market where the copyright holders have to think about new solutions, where the legitimate physical music market doesn`t “nearly” exist, where they can`t loose as much like in Europe or the USA (See my post a few weeks ago about the Chinese music market).

I`m really excited what happens there in the near future… imagine what the market could learn from “a experiment” in a size like this. A success of this model could be the breakthrough and could change the music business model in just a few years completely…
Well, it “could”. Am I too euphoric?


One Response to “Google Is Going Into The Free Music Business – In China”

  1. […] with a handset (similar to Nokia’s model)… not mentioning the Last.Fm thing, the Google China talks… and so on… news coming in weekly… there is movement now… What about […]

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