Google Music Details Leak, Obstacles Remain

Wants A Big Cut

Rumors of what GOOGLE's highly anticipated online music service are popping up in greater detail. WIRED.COM reports on a hybrid downloading music store and cloud storage service, yet sources contend that the contractual details have yet to be finalized.

Industry sources reportedly told BILLBOARD that a download store would launch first, operated much like iTUNES and AMAZON's music store. Users of the service could then store their music in a locker, which could then be streamed or downloaded to any Internet-connected device. The subscription fee for the storage service would be around $25 a year.

The one big fly in the ointment is compensation. Sources indicate that GOOGLE is demanding 50% of the revenues, with the rest going to the rights holders Left unresolved is which party (or how much each party) pays for the music publisher's 10.5% cut. Those terms makes iTUNES' deal look comparatively lucrative to the labels.

It could be possible that GOOGLE could offer other concessions for such a deal, such as removing sites associated with piracy from search results, but sources doubt GOOGLE would go that far. "I don't see this ever working with the U.S. labels, especially not with a 50/50 split," another sources to WIRED.UK.COM. "GOOGLE has seriously overestimated their generosity"

« see more Net News