Google Reportedly Negotiating With EMI & WMG Over Cloud Licensing
September 13, 2012
Google is reported closer to launching a music scanning system similar to Apple and Amazon's features. Sources tell CNet that Google has licensing deals in place with two of the four major labels (Universal Music and Sony Music) but is still negotiating with EMI and Warner Music Group.
Google's cloud service is not licensed by the major labels, and therefore cannot offer the same matching features available from Apple and Amazon's clouds.
Sources told CNet one of the issues holding up the licensing deal is that executives at EMI and WMG do not see a viable business model with the scanning feature, which lets users match their digital music catalog to songs already centrally stored in the cloud. Users can then stream copies of their library, rather than uploading the files individually to the cloud servers.
Google would reportedly offer this feature for free, as opposed to Apple and Amazon, which charge for the option. CNet's Greg Sandoval writes that "Sources say most decision makers at the big labels are fine with Google offering the service for free, but they don't have any intention of making the music free to Google. Apple and Amazon paid for the rights to offer scan and match and Google must too, say the sources. So, the parties are stuck on price."