Google Had Big Expectations For Its Music Service

Google expected to launch its music service in 2010, and expected it to be close to a billion-dollar business in 2012, according to an internal presentation that was revealed in the Oracle-Google trial today.

In fact, things didn’t work out quite as planned.

Let’s take a look:

  • Google expected music revenue to start in 2010. In fact, the Google music locker — which lets users upload their music to the cloud and then access it on any device — didn’t launch until May 2011, and the download store didn’t launch until November.
  • Google expected to charge $2.99 a month for the locker. So far, though, it’s still free up to 20,000 songs. No revenue there.
  • Google expected gross revenue of $908 million to $1.48 billion in 2012. Google doesn’t report revenue here, but recent reports suggest that record labels are not happy with the store’s performance so far, and the Google Music brand was recently eliminated in favour of the more generic “Google Play.” You don’t do that if a product is a smash hit. Also, Google wasn’t able to get one of the major labels, Warner Brothers, on board for the store, which would presumably hurt sales.

Meanwhile, iTunes made almost $2.15 billion for Apple just last quarter, although a lot of that was from app sales.

Here’s the slide:

google slide deck 15

Photo: via The Verge


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