New offensive Google's music market
No potentially lucrative sector of the Web can not escape Google1. Net giant announced Wednesday the launch of a service streaming2 music (a subscription to a music library rather than buying securities unit). Google Play Music All Access will be available for a subscription of $ 9.99 per month, first in the United States, and then rapidly in other countries, including France.
To make its offer streaming attractive, Google did not skimp on resources. It would have won agreements with the largest majors, Universal Music, Sony Music and Warner Music. "Millions of songs" are available. Google relies on its ability to recommend content based on users' tastes and manage research to differentiate. With music streaming, Google does more than add another string to its services available in Android (the operating system for smartphones and tablets, including used by Samsung, LG, Sony).
Unmet goals
Group Mountain View 3change totally strategy in music. Until now, he was content to copy Apple's iTunes download service with its securities unit, called Google Play Music. But it has not achieved its objectives in sales, generating only "a few million" dollars in 2012 according to analysts. The U.S. is trying to solve a problem so far, its services on Android does not generate enough revenue. The comparison with Apple performance in the field may be cruel to Google. In the first quarter of 2013, iTunes, App Store 4 (the Apple App store), iBooks … generated over $ 4 billion in revenue. That's four times more than Google Play. This despite the fact that 900 million Android devices have been activated worldwide, against 500 million for Apple. Another concern, Samsung would pull more profits from Android as Google itself, according to the firm Strategy Analytics.
$ 900 action
For Google, it becomes urgent to restore balance. However, the market for online music and especially the streaming is one of the most promising. And it is still under construction. For now, they are "small players" as Pandora5, a kind of Internet radio with more than 200 million users, the Swedish Spotify, which displays 6 million premium subscribers paying out between 5 and 10 dollars per month, or the French Deezer, who clear the market. But the big players arrive. Google has taken the first step, Apple would consider the follow Amazon have a project in the area, according to the Wall Street Journal.6
Buoyed by these ads, Google stock has passed for the first time the threshold of $ 900, up more than 2.5%, to $ 907, while its market capitalization now exceeds $ 300 billion. It is similar to that of Apple, which totaled 408 billion, or 240 billion less than last September, when the action has reached its historical record.
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