Why record record labels are fuming over Google’s music service

By on May 12, 2011 at 6:32 PM
mobile May 12, 2011

Google announced and launched its Music Beta service on Tuesday, and record execs aren’t too pleased with its decision to move ahead before reaching a deal. “People are pissed,” one record label exec told Hollywood Reporter, which explained in one article why it took so long for Google and the music industry to reach an agreement. Reportedly, Google offered some labels larger advances than others, which resulted in some firms holding out for more money. Similarly, the music industry is concerned that Music Beta users will upload music stolen from P2P sites — that the industry already wants removed from Google’s search results — to Google’s music storage locker. Lastly, the recording industry was concerned that Google’s music service could weaken the revenue stream from other sources, such as Apple’s iTunes. Ultimately, driven by competition from Amazon’s Cloud Drive, Google decided to pull the trigger and launch anyway.

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  • Longhairbilly

    They are concerned that users will upload music stolen from P2P sites. Really? I wonder what would happen if banks adopted this thinking? “Sorry, we are no longer allowing you to deposit any money. You may have stole it.”

  • Anonymous

    I’m glad Google went ahead without record labels, they gettin too freakin greedy and trying to stay in the stone ages. I applaud Amazon and Google for sending the message “We’re gonna do this with you or without you.” nobody but Apple is gonna bend over and suck they di*is and I’m glad they’re starting to realize this. F the record labels!

  • Anonymous

    Good.  With two giants like Amazon and Google saying “enough is enough”, it’ll be interesting to see what effect this has when the dust settles.

  • http://www.vgchartz.com SuperChunk

    I’m glad they did. Fuck the labels, greedy dirty bastards.

  • http://pulse.yahoo.com/_GP2WYAHXS6CRUREISWBGPUSUGE Michael

    We have modern day music artist? in a world filled with Lady GaGa. Katy Perry, and Britney Spears…. where are the artist?!?!

    IF i buy my music i have every right to store and listen to my music however i want. and if that is cloud based then so be it.

    IF i steal music do not be mad at the places that allow you to cloud store music. Be mad at the P2P sites that supply the music. 

  • http://twitter.com/MrKow84 Kyle

     wow… so what about the damned artist who made the fuking music ??? They deserve the money… you ppl make me sick.

  • http://ocentertainment.net ocentertainment

     There was also this little number:

    “But the bigger issue was that labels wanted to use the negotiating process to lean on Google to eliminate links to pirate sites and services from its search results.”

    Frankly, if that was one of the reasons the deal fell through, so be it. I’d rather have a less-than-ideal solution for my music consumption than for Google to kowtow to these ridiculous, not to mention entirely unrelated demands. Internet censorship dilemmas have no place in negotiations over pricing structures, and that the music industry even thought they could use this situation as a way to try to strong arm Google into filtering their search results is deplorable.

    Good riddance, I say.

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