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Article posted on 09/8/10
Author: Jay Whitfield
Photo: NYT

Audiophiles and Record Labels
Alike Anticipate Holiday Season
For a Google-Apple Showdown

The hot buzz around the internet today is a story we first noticed here at Day Trending about a week ago, which is Google's planned entry into the online music provider service. But in the technology sector since so many things seem to be happening at once, it may take a few days before a topic becomes hot enough to trend. Some items which merit more attention sometimes start off slow with a press release or announcement and take a few days before traffic increases, and more news outlets cover the story. We try to cover all the news about the search engine leader and their business plans.

Google's Vice President of Engineering and developer of the Android operating system, Andy Rubin is heading up talks with major record label executives for the development of a song download store and music locker service as reported by the Reuters news service. This kind of service would be in direct competition with the Apple iTune domination of the online entertainment sector. Apple iTunes store accounts for over 70 percent of all online digital music sales.

"Finally here's an entity with the reach, resources and wherewithal to take on iTunes as a formidable competitor by tying it into search and Android mobile platform," said a label executive who asked not to be identified. "What you'll have is a very powerful player in the market that's good for the music business."

Google has recently entered the cell phone market and is now posting sales upwards of 200,000 units per day with the Android software installed, and is already competing with the Apple iPhone market. Reuters reports that although iTunes has breathed life into a fading business model they are becoming increasingly concerned about the militant tactics used by Apple for pricing, control and formats of digital music.

Although Google is a major player to this online business warfare, which according to the aphorism "Competition is Good" stands to benefit most parties; Amazon the giant online bookseller has also had an online presence in the form of their own online MP3 store since 2007, but only retains twelve percent of the market.

"We're cautiously optimistic because Google has great scale and reach but doesn't have a track record in selling stuff," said another label executive who declined to be named as the talks are still ongoing.

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