A report by Billboard says Google has been circulating a proposal among record labels offering users a two-fold plan that includes a cloud-based locker for $25 a year where users can store their music and a conventional digital music store to buy tracks from.
The model differs from Apple
The cloud-based digital music store will allow users to stream or download music directly to any web-browser without a charge. Users also have the option of storing some music bought through its digital music store in the cloud-based locker or to load it on a device.
The new service will also grant users the right to listen to a complete track once, and then only 30-second snippets, before buying a track -- a feature loaned from Lala.
The differentiating factor for Google's Music store -- if Billboard reports are true -- lies in its ability to use the digital online music store in conjunction with the cloud store. Users can directly buy and store the music in the cloud-locker and can access music from any internet-based device. Also when they are not online they can still download the music to a mobile app.
The cloud-locker will also be overlaid with a social-network feature whereby users can exercise the option of transferring their playlists to fellow subscribers, who in turn can listen to the complete track once.
Google's cloud-locker will also scan a subscriber's hard-drive and will upload any track licensed by Google.
According to the Billboard report, sources suggest that Google is offering 50-50 subscription-revenue sharing with the master rights holders and a 10.5 percent share with music publishers. It is also negotiating a three-year licensing agreement with the publishers.
But if Google is able to iron-out an agreement with music labels, Google can be a formidable opponent to iTunes. With a cloud-based, device-agnostic Google Music, Google can garner volumes to slash prices to compete against Apple.
International Business Times, The Global Business News Leader
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