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Google Faces Huge Challenges with Online Music Store

Google is expected to unveil its online music store today to compete with Apple’s iTunes store – the largest seller of digital music.

However, critics said Google face's huge challenges and hurdles ahead.

Google's music downloading service will combine an MP3 download store with a cloud storage system set up to allow users to store songs remotely and stream them on multiple devices.

As the tech wars continue to heat up for the Holiday season, Google is looking to provide an online music store to compliment the numerous tablets and mobile devices that will contain its Android software system, while competing with other tech giants entering the media market.

“The Internet- search giant also faces budding competition from Inc. (AMZN), which has bolstered its music-download and storage service, and Spotify Ltd., whose partnership with Facebook Inc. has buoyed U.S. membership this year,” said Bloomberg’s Brian Womack and Andy Fixmer.

Although the online music market is wide open, some people feel that Google is 10 years too late to compete with Apple’s iTunes.

“They’re coming into this market rather late in the game, where there are large, established players,” said Ray Valdes, an analyst at Gartner Inc. in San Jose to Bloomberg. “You can say it’s a saturated market.”

Although Google is clearly behind Apple when it comes to an online music store, others are less reluctant to doubt Google.

"If they do it right, it could be huge and create a true two-horse race with iTunes in the music world," said Zeus Kerravala, principal analyst with ZK Research, to "Apple has a hugely loyal base, of course. But if you're not an Apple fan, this is a great alternative - that is if Google gets the content."

The event where Google will be expected to announce the music service will be held in Los Angeles and may unveil the music service's cloud storage and social networking features. The exact location of the event will be Mr. Brainwash's Studio and will start at 2 p.m. The doors will open at 1:15 p.m.

For those who wish to view the event online, a live stream will be provided at Android’s YouTube profile.

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