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

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.

Read