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Google ready to spend billions to make Google Play Music a success

Google is reportedly breaking out its massive checkbook in an effort to gain blanket rights to major labels’ music catalogs. Following unconfirmed reports that Google’s music offering was floundering and losing users each week, music industry insider Wayne Rosso says that the Internet giant is now holding negotiations with at least one major label in an effort to gain access to its entire catalog. According to Rosso, Google is willing to spend more than $1 billion for such access.

“Google has offered at least one label over a billion dollars for all the rights in every country for every piece of music and for every platform,” Rosso’s source claimed. $1 billion represents more than 6% of the entire music industry’s global revenue in 2011 according to the International Federation of the Phonographic Industry.

While such a substantial offer would seemingly be appealing to labels, Rosso’s source indicates that the company in question is hesitant for reasons that go beyond money.

“They’re just shrugging and stringing Google along, trying to keep milking cash out of them,” the source reportedly said. “They want the money but on the other hand they hate Google. It really sticks in their craw that Google continues to present links to pirated content at the top of their search results.”

Google did not immediately respond to a request for comment.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.