Google-backed Gbox online music store uses Universal's open MP3s

Google, Universal, and a new start-up company called gBox are teaming up to sell music exclusively through an ad based format, bucking the iTunes style method of selling music online. The partnership works out with Google referring users to gBox, where they can buy DRM-free copies of Universal's music catalog for 99 cents. Universal still has to pay Google for the ad space, which begs the question, why couldn't Universal simply distribute the music itself? But hey, at least it looks like the whole DRM-free thing's working out for Universal and Co. Your turn, Mr. J.

[AlexP @ Aug 13th 2007 2:33AM]

Google-related news on Yahoo, oh oh!

[Kevinleemonster @ Aug 13th 2007 2:54AM]

I think the story here is not Google or gBox, but Universal releasing DRM free music. By now it seems we're all clear that IF we can get DRM out of system, we'll actually have a system that works. Having the world's largest and most influential record company bless that concept through gBox or otherwise is that little snowball that has now started rolling down hill.

[Julian Bond @ Aug 13th 2007 3:34AM]

"why couldn't Universal simply distribute the music itself?"

Because that would introduce a major Channel conflict. The Big 4 record companies cannot afford to open a retail arm because that would damage their existing route to market.

A better question is "why couldn't the artists simply distribute the music itself?" Reducing the record companies to a source of musical VC and marketing consultants. Both of which roles could be done better by 3rd party specialists.

[yoshi @ Aug 13th 2007 3:45AM]

This whole story seems weird. How exactly is this, "bucking the iTunes method of selling music online"? The music through gBox appears to be sold the same way all other music is sold online. The only difference is that Universal is buying ads to promote an online music store no one has ever heard of before. If Universal were to buy ads directing people to iTunes, it wouldn't change the way iTunes music was sold.

Another weird part, "Songs at gBox cost 99 cents each. For the Universal songs that are part of the test, gBox will offer an MP3 version free of copy-protection technology known as digital-rights management, or DRM. A DRM-enabled version will be available at the same price." Offering DRM or DRM-free songs at the same price. Only Universal could come up with that business model.

And the whole, "we don't want to confuse Macintosh users by letting them buy the songs" probably has more to do with "we want to screw over Apple until they see the light".

[Jeff @ Aug 13th 2007 11:17AM]

My thoughts EXACTLY.

I've the feeling, though, that Universal is going to sell a miserably low number of DRM-free songs and decide their test proved that there is no market for DRM free songs.
(where all it will really prove is that there is no market for yet another crappy online music store trying to find a gimmick instead of creating a lush user experience.)

[Marc @ Aug 13th 2007 4:44AM]

Does anyone have any idea where to buy this DRM-free music? I've been buying 2 EMI albums a month since they went DRM free and I want to buy some Universal but it's completely invisible on the Rhapsody and Amazon sites and the gbox.com site is some kind of travesty.

[Grant @ Aug 13th 2007 6:24AM]

Wow, can't believe how bad the gBox site is. That is dreadful to look at and use. How on earth are they going to sell anything through that crap.

[Pans @ Aug 13th 2007 8:11AM]

The site hasn't even launched yet, genius.

After it launches, then you Apple drones can swoop in and criticize it, as we all know you are going to do.

Anything to protect Apple, eh?

[MacGuru @ Aug 13th 2007 9:49AM]

Apple doesn't need any protecting moron. If you Microsoft worshipers would have been right, Apple would have been bankrupt 30 years ago.
You just can't believe not everybody trashed their iPod and use a Zune.
Welcome to the real world.

[Miles @ Aug 13th 2007 3:56PM]

The fact that you responded to his comment so belligerently shows that fanboys like you are trying to protect Apple.
Your only defense is that you say you aren't defending Apple because they don't need protecting.
As I see in public, more and more people are dumping their iPod for better MP3 players like Creative Zens and Sansas.
Who knows though, the iPod may make another stride when Apple releases the 6th generation.

Also, I'm a Mac user. I don't even boot up into Windows anymore.

[Dave @ Aug 13th 2007 7:42AM]

"Thank you for visiting gBox --The first social commerce widget for gift-giving online!
Hey, you need to be on a Windows machine and use Internet Explorer to play with gBox.
We are working hard to support FireFox users and the Mac, but it will take some time. Big apologies for the inconvenience."


FAIL! This idea is totally gonna pwn apple... not

What I need is to buy music.. not another computer to "play with gbox".

[Tony @ Aug 13th 2007 11:31AM]

Seriously??? The site hasn't launched, as was stated a few posts up...

Everybody just wants to slam somebody on here. To be total honest, your opinion and my opinion mean absolutely nothing right now. When the site opens and goes live, then we decide. But for now all the "AppLe WiLL OwNZor gOOgle" crap just makes you look dim.

[mike k. @ Aug 13th 2007 9:06AM]

Lets do some rumor mongering with this story.

Could this be the shot across the apple bow for a Google-Phone/Digital Audio Player?

OH I THINK IT IS!!!

[DW @ Aug 13th 2007 11:17AM]

I'm probably geeking out about this way too much, but I CANNOT WAIT to try this out!

The one thing I miss about my eMusic subscription is that there are no major labels on it. (Though eMusic has incredibly high audio quality.) I really don't dig iTunes, despite it being nicely integrated into my Mac, because the DRM just ain't cool at all... no matter how you slice it.

The great things about this is that - as I recall reading last week - the artist's websites and music services can determine the bit rate at their will, but the price stays at 99 cents!

Yes, I will shun iTunes and go to an actual website to buy my music as long as it's a good experience. If they do this thing right, then I am totally sold!

[James @ Aug 13th 2007 1:29PM]

Hello likely paid marketer...

1) You can buy DRM-free tracks from EMI on iTunes. Yes, if you are buying single songs it's 30 cents more but if you buy the whole album there is no price increase.
2) The "artist's" will have absolutely no say in the bitrate their music is sold in. Do you not understand how a record label works?
3) The DRM for Universal songs bought through iTunes is UNIVERSAL'S fault. Ask yourself why Universal isn't willing to sell DRM-free through iTunes and you'll realize the true intentions of this program: nothing to do with DRM, everything to do with screwing Apple whle still maintaining Apple as a revenue stream.
4) eMusic rocks
5) Universal is evil.

[DW @ Aug 13th 2007 1:59PM]

Hola, James -
Let me say, first off: I WISH I were a paid marketer. You have any idea what the incentives could possibly be for someone like that? It could actually be a nice deal.

1) I purchased the latest Spoon album in full last month. Other than that, the last time I purchased an entire album (from anywhere) was more than a year ago. I only buy the songs I want on an album, so the iTS album price break has little/nothing to do with me.

2) You're right, bu the individual stores will have a say in the bit rate. Did you read the press release from last week?

3) I couldn't care less if Universal & Apple are pansy-slapping each other like little children. I'll go to the place that has the music I want in the quality I want for the price I want (or the closest to it). You see, just because I use a Apple products (a Mac, iTunes & iPod) doesn't mean I have some blood loyalty to them. I do what works. The End.

4) You're right! eMusic does totally rock! I'm totally addicted to it.

5) You're right again. Universal is a bit evil. But, Apple's no saint either. So what's your point? Their computers are good, so I use them; if Universal's music offering is good, then I'll use that. Again, I just go with what works.

[Ahren @ Aug 13th 2007 1:35PM]

Pretty disappointing. Not only is it ridiculously lame that it only works for IE, but it looks like the Myspace of online music stores. It's just hideous.

And I'm not just comparing it to iTunes, check out Beatport.com and see how it should be done.

[Bloobie @ Aug 13th 2007 3:39PM]

In other news.. Google just announced that they are shutting down their online video store, with no refunds.

http://news.bbc.co.uk/2/hi/technology/6944292.stm

[Abhishek @ Aug 13th 2007 5:59PM]

This is certainly an interesting move for Universal who recently refused to renew its contract with Apple.

However I dont think Apple will be impacted as a result. Read my post on this topic, which goes into further analysis of this deal:
http://abhishek.tiwari.com/2007/08/13/should-apple-fear-the-universal-google-and-gbox-tag-team/

Abhishek