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Google on the Verge of Opening Music Store

Eric Mack | Oct. 20, 2011
Google could be opening a music store to compete with Amazon and Apple any day now.

Catching up

Analyst Charles King agrees that a music store for Google isn't just about catching up with Apple and Amazon, it's also a way to catch up with Facebook.

"The bigger issue is how a service like music sales and storage can help Google build a broader, deeper, long lasting online community… I think this qualifies as an effort to attract a broader audience," King said.

Perhaps that's the twist Rubin mentioned -- some sort of deep integration of music with Google+ and Android. Or perhaps, Google will use one of its other simpler advantages in the market.

"They operate with heavy advertising subsidies and will support new products with other revenue streams so they could underprice both” Amazon and Apple, says Rob Enderle of the Enderle Group.

Whatever the pricing and strategy of Google's music store turns out to be, the reports from the music industry are that deals with the search giant are as close as they've ever been, meaning we could see something as soon as in the next few months.


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