Google China to offer music online
Google China is planning to offer free music downloads in an effort to increase their local market share, reports The Wall Street Journal.
According to the article, Google is at an advanced stage of negotiations with a Chinese online music service to provide free downloads from three global record labels and numerous smaller brands.
The service, anticipated to begin within the next few weeks, will be an important boost for Google as they try to build market share in China.
The Chinese search market is currently dominated by homegrown search engine Baidu, which according to recent CNNIC figures accounts for almost 75 percent of the Chinese market. In comparison, Google currently hold a market share of around 15 percent and have found it difficult to make any serious impact in China.
One major reason for Baidu’s success has been its MP3 music search facility, that allows users to easily locate files for download.
Legal music sharing
Although the major record labels have repeatedly taken legal action against Baidu for its part in alleged copyright violations they have so far been unable to prevent the practice in the Chinese courts.
In providing a licenced, free alternative to Baidu’s MP3 search service, Google will hope to nullify Baidu’s advantage while avoiding any possible future lawsuits.
“In principle, search engines provide search for people to access music more efficiently… that’s a good thing,” said Catherine Leung of Universal Music China.
“It’s the links and encouraging people to download illegal content that’s a bad thing.”
Growing market
With both the number of China’s Internet users and the value of the Chinese online market growing by the day, the importance for Google of establishing a significant brand in China sooner rather than later is paramount.
In the period 2006 to 2007 China’s Internet population grew from 137 million to 210 million active users. Analsys International estimate that in 2007 Q4 the Chinese search market was worth $131 - nearly double the figure of the previous year.
Although Google have not made an official comment on the story, sources suggest that Top100.cn may be the online music provider in question.
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