Google Launches Free, Legal Music Downloads in China

[Damien25]

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Google on Monday launched free downloads of licensed songs in China, while sharing advertising revenue with major music labels in a market rife with online piracy.

Lee Kai-Fu, president of Google in greater China, said one reason Google lagged in the mainland search market was because it did not offer music downloads, the missing piece to its strategy in a market where it trails leader Baidu.com.

"We are offering free, high quality and legal downloads," Lee told reporters. "We were missing one piece ... we didn't have music."

The service offers downloads of some 350,000 songs — from Chinese and foreign artists — a number that will rise to 1.1 million in the coming months, said Gary Chen, chief executive of Google's partner www.Top100.cn, a Chinese music website co-founded by basketball star Yao Ming.

Music from artists signed by Sony Music, Warner Music, EMI and Universal Music will be available on the service, which Google has no current plans to expand beyond China, said Lee.

"This is the first serious attempt to start (monetizing) the online market in China. I can't overestimate how important this is," said Lachie Rutherford, president of Warner Music Asia Pacific and Asia chairman of the International Federation of the Phonographic Industry (IFPI).

Users will be able to search by musical measurements such as the level of "beat" in a song and "instrumentality," as well as by artist and song name.

IFPI said last year that more than 99 percent of all music files distributed in China are pirated, and the country's total legitimate music market, at $76 million, accounts for less than 1 percent of global recorded music sales.

The new service will attract users away from illegal download sites because the music and service will be of a higher quality, said Warner's Rutherford.

Downloads of unlicensed music and videos are rampant in China, the world's biggest Internet market by number of users.

While Google dominates the global web search market, in China Baidu holds more than 60 percent of the market, more than double Google's share.

[mauricio]

I would assume that Google is paying a small price for every download. From the sound of things they might recover a small portion of their costs in ad revenue, but the real goal is to offer a compelling service to capture more of the massive Chinese advertising market.

[Andrew]

Google currently offers more than 350,000 high quality songs from Chinese and foreign artists signed by Sony Music, Warner Music, EMI and Universal Music. According to Lee Kai-Fu, president of Google in China, one reason Google lagged in the mainland search market was because it did not offer music downloads, the missing piece to its strategy in a market where it trails leader Baidu.com Inc

[Damiano]

Through the alliance with the four major record labels can Google may run on the Chinese search engine Baidu. It has a market share of slightly more than sixty percent, while Google only thirty percent of the search queries handles. According to Kai-Fu Lee, CEO of Google China, an examination of the company that 84 percent of respondents as the main reason music in order to use search engines. The Chinese arm of Google, the introduction of the free music can quickly grow, said Lee, but the CEO did not pins on prediction.