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| Google music streaming would boost industry, says Universal executive | Google music streaming would boost industry, says Universal executive |
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| Google's plans to launch a music-streaming service would give the record industry a welcome boost on its path to recovery, according to a digital executive at Universal Music Group. | Google's plans to launch a music-streaming service would give the record industry a welcome boost on its path to recovery, according to a digital executive at Universal Music Group. |
| Francis Keeling, global head of digital business at Universal Music Group, said Google's scale could turn millions more music listeners into paying subscribers. | Francis Keeling, global head of digital business at Universal Music Group, said Google's scale could turn millions more music listeners into paying subscribers. |
| Google is understood to be in negotiations with major music labels about launching a streaming service, similar to Spotify, later this year. | Google is understood to be in negotiations with major music labels about launching a streaming service, similar to Spotify, later this year. |
| Speaking in London at the launch of industry body IFPI's annual report on Tuesday, Keeling said: "We talk about for subscription services, the need to have a funnel. Google, with its hundreds of millions of users through search, YouTube with its more than 800 million users, arguably is the biggest funnel we could have. | Speaking in London at the launch of industry body IFPI's annual report on Tuesday, Keeling said: "We talk about for subscription services, the need to have a funnel. Google, with its hundreds of millions of users through search, YouTube with its more than 800 million users, arguably is the biggest funnel we could have. |
| "Clearly if we could get consumers into a legal funnel through that route and encourage them to subscription, that would have a very positive impact on the business." | "Clearly if we could get consumers into a legal funnel through that route and encourage them to subscription, that would have a very positive impact on the business." |
| Google launched a cloud-based music player in the US in 2011 in a bid to compete directly with Apple's iTunes, which commands more than 60% of all digital sales. Last year, the service expanded to the UK, Germany and other European markets. | Google launched a cloud-based music player in the US in 2011 in a bid to compete directly with Apple's iTunes, which commands more than 60% of all digital sales. Last year, the service expanded to the UK, Germany and other European markets. |
| A move into the fast-growing music-streaming market would be hugely significant for the industry. Google's influence in the smartphone market – its Android software is activated 1m times each day – would give the music player an advantage over rivals such as Deezer, Rdio and Spotify. | A move into the fast-growing music-streaming market would be hugely significant for the industry. Google's influence in the smartphone market – its Android software is activated 1m times each day – would give the music player an advantage over rivals such as Deezer, Rdio and Spotify. |
| Google has declined to confirm the detail of reports about its streaming player, including suggestions that its price plan would mirror the three smaller competitors. Deezer, Rdio and Spotify offer a free, ad-supported service alongside a £9.99-a-month subscription for premium users. | Google has declined to confirm the detail of reports about its streaming player, including suggestions that its price plan would mirror the three smaller competitors. Deezer, Rdio and Spotify offer a free, ad-supported service alongside a £9.99-a-month subscription for premium users. |
| But Google's streaming ambitions still have stumbling blocks to overcome. Music groups remain frustrated that Google and other search engines are slow to downgrade illegal-filesharing sites, which the industry claims are visited by a third of all internet users. | But Google's streaming ambitions still have stumbling blocks to overcome. Music groups remain frustrated that Google and other search engines are slow to downgrade illegal-filesharing sites, which the industry claims are visited by a third of all internet users. |
| However, Keeling said Universal, home to artists including Nicki Minaj and Justin Bieber, has a "great relationship" with Google. | However, Keeling said Universal, home to artists including Nicki Minaj and Justin Bieber, has a "great relationship" with Google. |
| "Google is a massive organisation with the many parts it operates, such as the search business and the device business and the music business with respect to YouTube and streaming," he said. | "Google is a massive organisation with the many parts it operates, such as the search business and the device business and the music business with respect to YouTube and streaming," he said. |
| "Like all search engines, there is a problem; we're asking all search engines to prioritise legal services. We know that search engines are a primary route for consumers to be able to find music and hope all search engines will implement those changes." | "Like all search engines, there is a problem; we're asking all search engines to prioritise legal services. We know that search engines are a primary route for consumers to be able to find music and hope all search engines will implement those changes." |
| Online subscription services, including Spotify and Rdio, are expected to have contributed more than 10% of the music industry's digital revenue for the first time in 2012 – a sign of their growing influence. They are also being quickly adopted by music fans, as the number of paying subscribers leapt by 44% last year, to 20 million people globally. | Online subscription services, including Spotify and Rdio, are expected to have contributed more than 10% of the music industry's digital revenue for the first time in 2012 – a sign of their growing influence. They are also being quickly adopted by music fans, as the number of paying subscribers leapt by 44% last year, to 20 million people globally. |
| The continued rise of digital in 2012 helped the music industry report its first lift in annual revenues since 1999, as the IFPI reported a 0.3% year-on-year increase to $16.5bn (£10.9bn). Digital music revenues were up 9% last year, to $5.6bn, thanks mainly to download stores. | The continued rise of digital in 2012 helped the music industry report its first lift in annual revenues since 1999, as the IFPI reported a 0.3% year-on-year increase to $16.5bn (£10.9bn). Digital music revenues were up 9% last year, to $5.6bn, thanks mainly to download stores. |