Google Inc., world’s number one Internet search engine, is targeting one of the largest online markets in the world, China, to offer free digital music downloads via the Web, the Wall Street Journal reported on Wednesday. So far, there has been one official confirmation from Universal Music, but other major labels such as EMI Group Ltd. and Sony BMG Music Entertainment are said to be in talks for the new services as well, sources familiar with the matter have said.
The Chinese music market has less of a legal side to it, while its piracy phenomenon is far more widespread than in North America and Europe. Google’s latest experiment could prove to be a lucrative deal, if the company will be able to reach an agreement with the major music labels. At the same time, Google will have to face Baidu, the number 1 Chinese search engine, currently dominating the market in the country.
“We were late entering the China market, and we’re catching up,” Google Chief Executive Eric Schmidt said last April, as the WSJ reported. “Our investment is working and we will eventually be the leader.” Baidu.com has been struggling with numerous searches for unauthorized music downloads, which has raised concerns from the music companies trying to protect their interests. Google is currently working on making quite an entrance on the Chinese online music market, with offering a free download music service.
The difference between Google’s efforts and what other competitors like Baidu Inc. and Sina Corp have to offer is that both Chinese companies have streaming music on their web sites, but they’re not downloadable. Google wants to turn that to its favor and start the new service within the next weeks. Since its debut on the Chinese market, Google came to a 26 percent market share and it’s growing stronger every year.