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Is Google looking at Spotify alliance for big music offer?

By | Published on Tuesday 26 April 2011

Google

According to C-Net, Google is again considering a partnership with Spotify to kick start its long awaited Google Music service, though a spokesman for Spotify denies they are in talks with the web giant about a possible alliance.

As much previously reported, Google has been developing a new music platform for a while now, and a digital locker style service is known to be at the testing phase. The web firm has also taken down its US-based enhanced music search service OneBox, leading to speculation it will be imminently replaced by Google’s all-singing, all-dancing new music offer.

However, insiders say that Google wants to launch its new music service with the record companies’ blessing, even though Amazon launched a digital locker last month without any licensing deals in place, arguing no such licences were required for a storage-based platform.

Google may be going the licensing deal route because it wants to offer a more sophisticated service, or because the company isn’t as certain as Amazon that a straight digital locker with playback facility can operate without a licence from the content owners. Either way, trying to bring the labels on board will undoubtedly slow down any launch plans.

Which is why, a Google insider told C-Net last week, execs there are again considering an alliance with or acquisition of an existing streaming music service which has its deals already in place. Spotify, of course, is fully licensed in Europe, and has two – nearly three – of the majors on board in the US. According to C-Net’s sources, at least one Google rep has told major label chiefs that the web giant is speaking to Spotify, even though the streaming service’s own rep denies any such talks are taking place.

Given Google’s core music service is thought to be a digital locker like that recently launched by Amazon – which would certainly play to Google’s strengths – it’s not certain why it would need a licensed streaming platform in its arsenal, unless it thinks it would be easier to secure licenses for the locker if existing streaming licences were in place, and the storage bit could be tacked on.

It’s thought this is how Apple plans to add licensed digital locker functionality to iTunes, ie by adding a storage element to its existing label agreements. And according to All Things Digital, two labels have already extended their iTunes deals in that way.



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