SAN FRANCISCO — Google (GOOG) on Tuesday launched a new Internet-based music service that will allow users to stream songs they have previously purchased in any form from the cloud to a computer or smartphone — but it’s just a sample of the music store the Internet giant still hopes to achieve.
Google was forced to launch its long-rumored music service without the licenses from the major recording labels it needs to sell music online the way Apple (AAPL) does with iTunes; instead, the Internet giant is offering a limited, invitation-only service that allows consumers to upload their music collections, and then stream songs back through phones, tablets or computers.
Even the name of the new service — Music Beta by Google — indicates its unfinished nature, and frustrated Google executives at its annual developers conference said the company was stymied from reaching its goal of an online music store because of “terms we felt were unreasonable and unsustainable” from two of the four major record labels, according to Jamie Rosenberg, Google’s director of digital content.
Still, “we’re open to working with the industry to sell music, to open a store in the traditional sense,” Rosenberg said in a brief interview. He declined to name the two record companies who would not work with Google, but said the company was exploring other avenues, such as working with artists or independent recording companies and organizations to sell music directly to consumers.
Google has grown far beyond its original identity as a search engine that carried users to the websites of content providers; the Mountain View company is increasingly getting into the direct sale of content. Google also said Tuesday it would begin offering Hollywood movies for rent in the Android Market, with prices starting at $1.99 to stream movies to an Android smartphone or tablet. Google also has an online electronic book-selling service.
A music store integrated with the Android phones and tablets, however, would address perhaps the most glaring gap between Android and Apple’s family of “i” devices, which allow users to easily download music, video and other content from iTunes to an iPhone, iPod or iPad. A music service “was an obvious opportunity for us,” Rosenberg said.
Gartner analyst Mike McGuire said music copyright law and music industry lawyers appear to be proving more difficult obstacles for Google than technology.
“It has nothing to do with technology. It has everything to do with the licensing and the rights management,” McGuire said. Nevertheless, he said, allowing companies like Google to sell music online remains attractive to the major recording companies because “the labels want a strategic hedge against Apple.”
Apple is also rumored to be working on a service that would stream music from the Internet “cloud” to smartphones or tablets. Google’s Music Beta is similar to the Amazon Cloud Drive music service recently launched by the online retailer — both require users to upload digital tracks they already own to the new services. For those able to get an invitation, Google’s service initially will be free and will allow users to store as many as 20,000 songs online. Users can request an invite to the service at http://music.google.com/about.
Songs stored on Music Beta will automatically sync between users’ smartphones, computers or tablet devices, all through Internet connections. “The best part is if I get a brand new phone, all I have to do is sign in, my music is right there, right away,” Google engineer Paul Joyce said.
Google also said Tuesday that it would be making major upgrades with the next version of Android — to be dubbed “Ice Cream Sandwich.” (Google names Android versions after food items.)
With Ice Cream Sandwich, to be launched in the fourth quarter of 2011, Google will attempt to solve the ongoing problem of fragmentation, where different apps may not work properly or at all on older versions of the operating system.
Google also said it has reached an agreement with the four major U.S. wireless carriers and manufacturers HTC, LG, Samsung, Sony Ericsson and Motorola to upgrade Android devices to any new versions of the operating system for 18 months after purchase.
Google also announced Tuesday that it has sold 400 million Android smartphones and tablets in 112 countries, with an additional 400,000 new devices activated worldwide each day.
Contact Mike Swift at 408-271-3648. Follow him at Twitter.com/swiftstories.
