Google plotting premium music service tied to search

Google is reportedly at work on a music download service tied directly to its search initiatives, with a premium subscription service slated to roll out in 2011. Citing sources familiar with the digital services giant's talks with the recording industry, The Wall Street Journal reports Google is proposing to introduce premium music services across its web platform and Android mobile operating system--its plans are still in the formative stages, but appear likely to include a web storefront offering premium downloads; the store will connect with Google search results, offering consumers a link to the store when they query a particular artist or song title. Sources add the store represents an interim step toward a more ambitious cloud-based service enabling Android smartphone users to stream music directly from the web. Google declined comment.

Google confirmed plans to launch a streaming music service across the Android platform last month. Google vice president of engineering Vic Gundotra demonstrated the solution during the company's I/O developer conference, declining to supply an expected launch date but noting "We think users are going to love this feature." Gundotra added that the music service will leverage technology acquired via Google's purchase of streaming media firm Simplify Media.

A premium download service would vault Google into direct competition with Apple's iTunes, further fueling the increasingly intense rivalry between the two tech giants. iTunes presently accounts for 70 percent of all premium music downloads in the U.S. according to market research firm NPD Group, with AmazonMP3 a distant second at 12 percent. Sales of digital tracks and albums accounted for 40 percent of overall U.S. music market share in the first quarter of 2010, a gain of 5 percentage points since Q1 2009, NPD said. Adding physical music purchases to the equation, iTunes still leads with 28 percent of all U.S. sales.

For more on Google's digital music aspirations:
- read this Wall Street Journal article

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