Google music service receives blessing from record labels

Google’s anticipated plan to make a serious run at Apple’s music superiority is being embraced by some record labels that have been anxious to see iTunes face a legitimate competitor.

This is an important move for Google as it looks for markets away from search, e-mail and its core businesses.  The company will be able to roll out search features with online songs, and playback on Android-powered smartphones, tablets and other products.

Google music service receives blessing from record labels

Google statistics indicate there are 200,000 Android phones sold each day worldwide — helping the open source OS rival the Apple iPhone and RIM BlackBerry.

The search engine company hasn’t signed official distribution agreements with anyone yet, but deals are expected soon, insiders indicate.

“Finally here’s an entity with the reach, resources and wherewithal to take on iTunes as a formidable competitor by tying it into search and Android mobile platform,” an unnamed label executive told Reuters.  “What you’ll have is a very powerful player in the market that’s good for the music business.”

The very fact that music industry executives are anxious for Google to provide an online music solution is interesting.

The record labels are becoming increasingly concerned over the control Apple wants of music distribution, royalties, and other aspects that they aren’t ready to give up.  Google’s addition to the music market could help soften the control Apple has, and may even allow additional competitors to enter the market.

Digital music is a market that the music industry was slow to accept, but the label heads now realize that they must embrace it for long-term survival.  Digital music sales have exploded over the past five years, but CD sales and overall music revenue has declined.

I’m looking forward to see what Google can bring to the online music game. Android users, especially, should be excited for this launch.