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January 27, 2006

Google Planning Online Music Store?

Posted by David Hunter at 7:13 PM ET.

While Microsoft is thinking about building an iPod competitor, Peter Kang at Forbes reports that Google May Be Close To Developing iTunes Competitor:

Bear Stearns maintained an “outperform” rating on Google and said the Internet search giant may be looking to expand into the MP3 downloading business.

“We believe that Google is in the midst of creating its own iTunes competitor, which we’ve dubbed ‘Google Tunes’,” the analyst wrote in a client note issued today. “We think this is a logical step, now that the nascent Google Video product has been introduced.”

Analyst Robert Peck speculated that it makes sense for Google to create a rival for the popular iTunes service by Apple Computer, given the explosive growth of unique visitors to the iTunes’ Web site.

Gary Price at SearchEngineWatch has a lot more. While this is nominally a Google and Apple story, a Google Tunes would be more competition for MSN Music and Microsoft’s evident aspirations in the same arena.

Filed under Apple, Coopetition, Google, MSN, MSN Music

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