Description: Google Inc. is entering the online music market almost a decade too late to pose a threat to Apple Inc., the largest seller of songs on the Web.
Source: businessweek.com
Date: Nov 16, 2011
The service, scheduled to be unveiled at a Google event in Los Angeles today, will let users store songs online and listen to tracks on multiple devices, people familiar with the matter said. Apple opened the iTunes store in 2003 and made popular the legal downloading of music from the Internet.
Google’s new challenge to Apple escalates the rivalry between the two companies, already locked in a fight for smartphone users and mobile-advertising customers. The Internet- search giant also faces budding competition from Amazon.com Inc., which has bolstered its music-download and storage service, and Spotify Ltd., whose partnership with Facebook Inc. has buoyed U.S. membership this year. READ REST OF STORYQuestions for discussion:
- Can Google compete with ITunes in this market? Why? Or Why not?
2. What is the biggest barrier to adoption of Google music in this market that is dominated by itunes?
Andrew Douglas
I believe that Google will be able to compete with iTunes because they are one of those companies that are so big and have so much available capital that if they really want to do something, they have the money and expertise to do it. I do not believe that it will be very quick, and Google may decide that it is more trouble than it is worth before establishing a sustainable position in the online music market, but with their immense brand recognition, and many users of both their search engine and android phones, they definitely have the customer base to succeed, provided they can entice people to make the switch.
The biggest barrier for Google to enter this iTunes dominated market is the customers’ reluctance to switch. Many people have an iPod, use iTunes or both, with large music libraries all ready built up. It would be a major inconvenience for people to transfer to Google’s system, especially if licensing and digital locks prevent them from keeping the library they all ready have when making the switch. Google needs to offer incentives for customers to come over to them, and make the transfer a painless process to gain widespread acceptance.
Enoch Dugbatey
Google can definitely compete with Itunes. Because like the Android, Iphones were the first touch screen phones to enter the marketplace but Google has pretty much taken over the smart phone market share so with intensive publicity I think Google can compete Itunes.
Sydney D
I think that Google has the ability to compete with Apple’s iTunes; however, I think that those who use iTunes are loyal Apple customers and will not be changing any time soon. The iPod has been available for numerous years and practically everybody has one. It would be hard to get people to switch from one product to another after they have been using it for years. I’m sure that if Google’s Music launch is successful and seems to be a hit, they won’t stop there. They will come up with something like the iPod to compete. I think Google has done great in what they do and as much as they are trying to broaden their market, I do not believe that Google Music will be successful. The competition between Google and Apple is huge but iTunes and the iPod is basically what brought Apple back into the market. I do not see Apple creating a search engine like Google so I do not think that Google should have a Music database such as Apples.
Kristen Schalin
I think in the long run yes Google will eventually be able to compete with iTunes in the online music market. But it will be a gradual and very slow venture. Google is a well known, profitable company, but is not know in the online music market. With the resources they currently have they are able to eventually establish a position over time. Their main problem however will be getting consumers to switch over from iTunes to their online music technology, also the fact that iTunes sells music for $0.99 and Google is looking at $0.99 to $1.29. They definitely have a long ways to go but may be able to compete with iTunes someday.
Their biggest barrier to consumers adopting Google music, is that iTunes highly dominates this market. They have obtained a strong and loyal consumer base. Many people own iPods, and therefore use iTunes and with the large quantity of songs available for purchase, many people have thousands of songs in the music libraries. To move their library to Google music would be very timely for a consumer and more reluctant to make the switch. There would have to be some kind of benefit to the consumer over staying with iTunes. Maybe something like cheaper songs, or some other enticement.
Kristin Schneider
It is a simple concept. iOS customers will use iTunes to purchase and listen to audio content, and Android consumers will use the new Google music to purchase and listen to their audio content. The kicker is, the iTunes has been successful for ten years, meaning Google may have a hard time getting themselves into the already overpowered market. There will be those customers who think that Google Music looks dated, and are committed to their iTunes, and there will also be those customers who will be excited by the free storage and on-the-go access. Google may give Apple a run for their money, especially since they strategically launched the servive before the holiday season, and offering more than just music; share options. Regarding the market, even if your Google, when your product is late to the game, your going to have to fight for the spotlight. In order to stand out, Google must focus on the user experience, making their experience more enjoyable then the competitors. They cannot beat around the bush, Google simply has to compare their service directly to the competition. And in doing so, they still must be humble. And lastly, Google has to focus on innovation.
Jian Li
It is not easy for Google to compete with iTunes in the market. Once people hear Google, often all they think about is the search engine. It is not doubtable that Google is the best in this field. Therefore, it is possible that people may have such an opinion that a search engine may not do a good job in other field. Its entering to the music store may attract some people because of curiousness and the popularity it gains through search engine. It does bring some advantages to Google, but after attracting some users, there needs to be more strategies to keep the users. This requires Google to have something beyond and above its competitors. Since most people get used to use the other existing music store services, if Google just provide the similar service, people may think why bother to switch to the others. Google needs to find its competitive advantages in order to have a share in the market.
As for iTunes, it is still about what people think, they relate it to their iPods, Nanos, even more apple products which can listening to music. It is a perfect complementary product. Therefore, to compete with iTunes, Google has a long way to go.
megane
Google has once again seized the opportunity to extend their sector of activity although it is already well diversified. Furthermore Google is not any competitor; he has the means to counter the hegemony of Apple in online music services (development of advertising, sponsorship …). By positioning itself as a Apple’s successor he can expect to benefit from certain advantages such as improving access to music, offer a more attractive price and storage space.
Yet Apple has managed to enter the market has already more than 8 years with the famous couple involving the online store iTunes and iPod product line. (Mp3 most popular),
it has a non negligible head start and a strong sense of loyalty and true-blue from his fans. With the arrival of a new player, the cards should still be redistributed and re-launched the competition. The new service, however, should not now worry iTunes, a pioneer in the industry, but might boost against the growth of Android.
Joseph Walls
I like that Google attempted to enter in to the online streaming TV with Google TV before they tried Music. I wonder if they will learn from the failure of GoogleTV. It will be interesting to see if they can compete against itunes. I’m guessing with all the Android phones out there these days they may have a chance, especially since itunes currently has almost no competition (asides from the illegal kinds).