We’re still waiting for Apple’s promised iTunes Match to arrive, but once it does, what will that stepped-up competition mean for the likes of Google? After all, while Google provides cloud-based music storage through Google Music Beta, it’s not doing the intelligent library matching that Apple is talking about, meaning that its storage needs scale relative to the number of users on the service, not the number of unique tracks stored. Perhaps more inconvenient, without selling those tracks directly to users, Google’s missing out on a big revenue stream. A new rumor says that Google may be back to work negotiating the needed licenses with major labels, possibly with the aims of offering an improved cloud storage system and its own MP3 store.
If Google secures the same sort of licenses Apple has, we could see Google Music operating in much the same way as iTunes Match. We’re sure that not having to upload your entire collection would convince more than a few hesitant souls to finally try out the service.
This rumor has reportedly been sourced from the word of “numerous music executives”, who believe we could see Google start things off by offering MP3 sales as soon as later this month. We’re just glad to hear that the labels may be back sitting down at the table with Google again, especially after earlier failures to come to an arrangement. Obviously, no one’s going on the record by publicly confirming the return to negotiations, so we’ll have to wait for an announcement to get the full skinny on Google’s plans.