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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.
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