Forum Moderators: goodroi
Google Inc on Monday launched free downloads of licensed songs in China, while sharing advertising revenue with major music labels in a market rife with online piracy.
Lee Kai-Fu, president of Google in greater China, said one reason Google lagged in the mainland search market was because it did not offer music downloads, the missing piece to its strategy in a market where it trails leader Baidu.com Inc."We are offering free, high quality and legal downloads," Lee told reporters. "We were missing one piece ... we didn't have music."
"The new service will attract users away from illegal download sites because the music and service will be of a higher quality"...
This is likely to mean that the subsequent clones of the Google downloads will be of higher quality.
Doubt it.
I tend to agree, at least about the downloads, but it's an interesting experiment with regard to the service part. Google and its music company partners are betting that they can extract at least something from market this way, via advertising revenues, vs essentially nothing from trying to sell the music in China directly.
As I read the article, music is a loss-leader here. The music companies are joining Google in an advertising venture that's not too different from Google's basic business model, of advertising-supported search. In this case it's advertising-supported music search.
I tend to agree, at least about the downloads, but it's an interesting experiment with regard to the service part. Google and its music company partners are betting that they can extract at least something from market this way, via advertising revenues, vs essentially nothing from trying to sell the music in China directly.
The only one attractive point is that the music is legal. However, this was not so important to the users.
[edited by: Harry08 at 7:21 am (utc) on April 8, 2009]
The only one attractive point is that the music is legal.
In my experience in China, I don't think "legal" is the immediate concern, and in economic downtimes, that may not change for a while.
Beyond search and service, though, I feel that thinker's point goes right to the main issue...
...the absence of viruses and crappy files that one can find on the peer to peer network...