According to Billboard, Google has signed a deal with Warner Music Group for its music subscription service. Mentioning the details of the deal, Billboard reported that, “Warner Music Group has struck a licensing deal with Google for two music services the technology giant is launching later this summer, according to executives familiar with the agreement. Google will offer two distinct subscription services – one through its YouTube online video property and another via its Google Play platform.
Executives at Warner, which is the first record label to commit to Google’s proposed music service, declined to comment. A YouTube spokesman issued the following statement: “While we don’t comment on rumour or speculation, there are some content creators that think they would benefit from a subscription revenue stream in addition to ads, so we’re looking at that.”
Fortune claimed in its March 5th report that Google has signed up with WMG for its YouTube division only, but Billboard says the deal would be for both Google Play and YouTube. For the time being it is hard to predict which of them is right, but one thing is for certain that this deal is not going to stop Google from bringing in more music companies to its platform. For the reason that “Google is also in deep negotiations with Universal Music Group, Sony Music Entertainment and other labels to nail down an agreement similar to the one it now has with Warner.”
Reports about the WMG and Google deal indicate that the new setup will enable Google to challenge Spotify and quite possibly Pandora once the search engine giant will launch the service later in this year. This means that Google is gearing up to jump into a space where a fierce battle is already taking place and the Mountain View company has offered something really amazing to its users in order to knockout out rivals.
The interesting thing about the deal between the two companies is that WMG is the first record group that has signed a deal with Google for its music subscription service, but back in October 2012 it was the last company to sign up for Google Play. Warner Music Group’s executive vice president, digital strategy & business development, Stephen Bryan “also held out for almost a year after rival record companies signed deals to sell downloads on Google’s music store that launched in 2011,” according to 9to5Google.
Source: Billboard, 9to5Google
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