According to a report from the Wall Street Journal, the music service Google is close to launching will include sharing features via integration with its Google+ platform, which isn’t that surprising, since Google has said the new social network will be part of everything it does. For Apple, however, the new social features in Google’s offering will reinforce what Spotify and other music services have already made obvious: Apple and iTunes are falling behind in the social-music race, which could have significant consequences for the company as the music industry continues to evolve.

By any measure, iTunes is still the 800-pound gorilla of the digital-music industry: More than 10 billion songs have been downloaded since Apple launched the service in 2001, and some record labels and music publishers now get a huge proportion of the revenue they make on their artists from iTunes. By launching the service — along with the iPod, which turned 10 years old on the weekend — Apple effectively re-engineered the entire music industry, convincing the major labels to use it as a conduit to reach music lovers who were busy downloading whatever they could get their hands on.

Obviously, that kind of power means iTunes isn’t going away anytime soon, and it will continue to be the main choice for record companies who want to monetize an artist. But the music business is changing — along with virtually every other form of media and content — as a result of the increasingly social nature of the web. And in that particular race, services such as Spotify are winning, in part because of their integration with networks like Facebook and their focus on streaming over buying.

Streaming and sharing is the new downloading
Facebook and Spotify have gotten a lot of criticism since the social network launched its “frictionless sharing” features, which allow services like Spotify to publish sharing info to a user’s Facebook page without having to ask permission every time. Many users have complained about this behavior — and that Spotify requires that anyone signing up have a Facebook account to connect to — and some have no doubt cancelled their accounts, but they are likely in the minority. In the end, this new kind of sharing, which shows links to what friends are listening to in the “ticker” stream on a user’s page, could be a hugely powerful driver for the industry.

And what kinds of weapons does Apple have? It has its massive market dominance — and it has Ping. Remember Ping? Apple’s music-based social network launched last fall, and was designed to do something similar to what Spotify and others are now doing: make it easy for users to share their activity and convince others to buy music. Except that Ping almost instantly looked like a social network from the late 1990s rather than a contender for the music-sharing future: as GigaOM’s Cyndy Aleo argued at the time, it looked lame in part because it wasn’t connected to anything else, and it made sharing surprisingly cumbersome (for his part, Om said that he thought Ping was part of “the future of social commerce”).

Ping shone a spotlight on one of Apple’s major weaknesses, which is a lack of knowledge or experience with social networks or social behavior. The company’s products are famous for their brilliant design and usability, but virtually none of that applies to things like Ping or Apple’s Game Center network (or to iTunes itself, arguably) since both seem more like ghost towns and afterthoughts than powerful competitors.

Twitter integration may not be enough
In an attempt to bolt on some form of social behavior, Apple added support for Twitter to Ping, and more recently it has integrated Twitter into many of its apps and services through iOS 5 — a ground-breaking move, since it rarely gives that kind of preferential treatment and real estate to a third party. (It tried to negotiate a Facebook deal but was rebuffed, presumably because of Spotify). This was a smart decision, since Twitter accomplishes much of what iTunes and Ping do not: Users can easily send out links to what they have bought or are listening to, and those links appear in the “media pane” at Twitter’s website and can be easily clicked on.

Despite this, however, it still feels like Apple is fundamentally playing catch-up in an industry that is moving rapidly towards sharing and streaming of music rather than simply purchasing, a la iTunes. With social services like Spotify and Rdio and MOG — not to mention Turntable.fm and Soundtracking — it is all about sharing music with friends rather than just acquiring it to keep forever. So how is Apple going to compete in this new kind of landscape? It will soon launch a streaming feature called iTunes Match, but the social element continues to elude it.

For the time being, at least, iTunes will remain the store of choice for many when it comes to buying music. And those who see their friends listening to music via Spotify and want to buy the same track may go to iTunes to do so — but then again, they might not. And if Google and Facebook integrate support for instant payments via Google Checkout or Facebook Credits, what kind of draw will Apple or iTunes have for new users then? The market dominance that Steve Jobs so brilliantly executed continues for now, but that dominance looks more and more precarious every day.

Post and thumbnail photos courtesy of Flickr users Josh Lindsay and Yodel Anecdotal

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Google is “close” to launching its own MP3 music store, Android head Andy Rubin said today. The company has been in talks to offer a music store for some time, but Rubin shed a little more light on the upcoming service today at the AsiaD conference.

Google couldn’t launch a full-service music offering earlier, so it launched a music locker that lets users listen to their music from the cloud. The record labels weren’t happy with that move, but Google has been persistent in wanting its own MP3 music offering to challenge established players like Apple and Amazon and has been willing to do whatever it takes.

Rubin didn’t reveal much about the upcoming service, but he did indicate it would be a little different from Apple and Amazon by offering “a little twist – it will have a little Google in it. It won’t just be selling 99 cent tracks.”

Google is in an increasingly challenging position now that Apple has iCloud for music storage and will soon have iTunes Match, a $25-a-year service that lets people legally access almost any song in their iTunes library. And then there’s Amazon, which already has a strong MP3 sales catalog, its Amazon Cloud Drive for music storage and the upcoming Amazon Kindle Fire tablet that will emphasize media consumption.

While Google launched Android 4.0 Ice Cream Sandwich last night, we’re not sure at this point if the major software update will help the music experience. And until the company completes deals with the major music labels, all we can do is wait and see.

Would you like to use a native Google MP3 store on your Android phone or tablet?

Filed under: media

Jonathan Rick is a social media strategist in Arlington, VA. You can follow him on Twitter @jrick and read his blog at JonathanRick.com.

The pace and power of web-fueled innovation is stunning. One day we’re swearing by Outlook, the next, we can’t live without Gmail. These changes exemplify the beauty of the Internet — the possibility that greener pastures are but a click away.

On the other hand, the list of tech innovations that could have been is quite long. Before we get into those, a few caveats:

Some of the companies below may not have missed the boat so much as skipped the ride. Oftentimes, these businesses simply chose to perfect their core businesses instead of tacking on new features.
None of these companies has been “MySpaced.” To the contrary, each remains well-regarded and innovative in its own right.

So, how did tech companies miss the boat?

1. Google Docs missed the SlideShare boat. Sure, Google Docs can display PDFs and PPTs, but documents are slow to load, maximized by default, and can’t easily be shared or embedded. By contrast, SlideShare is known as “YouTube for documents” because it’s fast, user-friendly and social.

2. Google Docs missed the Dropbox boat. The search giant passed on adding synchronization to Google Docs (or GDrive). Meanwhile, Dropbox pioneered this feature, for which it’s now the gold standard. And, in an ironic twist, during a five-day, company-wide hackathon, Dropbox developed the ability to sync its accounts with Google Docs. (Although Google may soon unleash a Dropbox killer.)

3. Microsoft Office missed the Google Docs boat. Only after companies, governments and non-profits had “gone Google” did Redmond release a cloud-based, collaborative version of its cash cow, Office (along with a few videos that contrast Office with Docs).

4. iTunes missed the Spotify boat. Apple cornered the digital music market years ago, but besides the all-important $0.99 per song price tag, Cupertino never really innovated with iTunes. Specifically, the software’s lack of social and streaming services created massive opportunities that Spotify — and Pandora, Amazon, Google, and Facebook — pounced on. Apple now is playing catch-up with Ping (pathetic) and iCloud (promising).

5. Mapquest missed the Google Maps boat. When I was in college, “Mapquest” was so popular that we used it as a verb. Today, it seems the only people who use this site are those who still have an AOL email address. The reason: thanks to relentless innovation (mash-ups, Street View, GPS-enabled mobile apps), Google Maps has presented itself everywhere you want to travel.

6. Google Latitude missed the Foursquare boat. Ironically, the founder of Foursquare was a former Googler who left because Mountain View wouldn’t allocate enough resources to his team, “leaving us to watch as other startups got to innovate in the mobile + social space.” Google still hasn’t made it with Latitude, whereas Foursquare’s points system, partnership with American Express, and merchant features have generated growth of a million users per month. (Perhaps this is why Google may want to buy Foursquare instead of compete with it.)

7. Facebook missed the LinkedIn boat. When I learned of LinkedIn, I thought, can’t you already do this with Facebook? Well, yes, but not without some hassle. Reed Hoffman, LinkedIn’s founder, recognized that, while we want to be hip in our personal lives, we strive to be practical and maybe even a little boring in our careers. This is why we use one email address for pleasure and one for business, and why we use Facebook to socialize with friends and LinkedIn to network with colleagues. Recognizing this, Facebook continues to hype its business pages, while such professional credibility comes naturally to LinkedIn.

8. Facebook missed the Twitter boat. When I learned of Twitter, I thought, can’t you already do this with Facebook? Indeed, at its core, Twitter is merely the Facebook status update. Yet Facebook lacked Twitter’s simplicity and pith, a void that ascetic Twitter founder, Jack Dorsey, was keen to fill. Apparently, 100 million people agree.

9. Blogger and WordPress missed the Tumblr boat. Finally, when I learned of Tumblr, I thought, can’t you already do this with Blogger or WordPress? Just write shorter. Again, you could, but not with Tumblr’s base-bones simplicity, dynamic community and effective reblogging feature. Microblogging, it turns out, is different from blogging. (No doubt, this is why Blogger just announced Dynamic Views.)

10. Yelp missed the Foodspotting boat. Even though Yelp remains the top social network for restaurant reviews, it overlooked an essential facet of the dining experience: pictures. Foodspotting seized this opening, made it mobile, and now is expanding its focus beyond foodies.

So why do these examples matter?

The beauty of the web is that it dramatically lowers the traditional barriers to entry, so an entrepreneur can penetrate an already saturated market. For instance, despite heavy competition from the likes of LinkedIn, Yahoo, Facebook, Google-owned Aardvark, and Answers.com, Quora plunged into the Q&A fray. In short order, it carved out and capitalized on a niche.

Examine the above list and you arrive at an under-appreciated conclusion: Internet innovation is so fierce and constant that it undermines the notion of zero-sum market share. Instead of vying for a piece of the same fixed and static pie, webtrepreneurs bake whole new pies. Not for nothing does Jeff Bezos insist that the Kindle comprises a “different product category” than the iPad. Just because a company maintains a seeming monopoly on a market doesn’t mean the market is devoid of opportunities. When there’s an innovator, there’s a way. With the web, Goliath is always vulnerable.

Sure, tech giants are somewhat limited. Just reference the lawsuit from the Justice Department, the investigation from the Federal Trade Commission or the hearing from Congress.

Internet innovation comes in tidal waves, big and bold. By contrast, when’s the last time your microwave got a radical upgrade? Or your shower head? And how’s that electric car coming along?

In the end, the web’s rising tides lift the only ship that matters: the user’s.

Image courtesy of iStockphoto, aluxum

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Steve Jobs’s death has prompted Simon & Schuster to move up the publication date for his much-anticipated biography by Walter Issacson. The CBS-owned publishing unit has moved up the release date for “Steve Jobs” from Nov. 21 to Oct. 24. Not surprisingly, preorders for the book are skyrocketing, and the title now tops bestseller lists at both Amazon and Apple’s iTunes.

A handful of code in iTunes 10.5 beta 9 suggests that Apple may soon start allowing customers to rent apps from the App store, according to The Tech Erra. If a rental system were put into place, it could cut down on money spent on apps that customers never use, which could reduce resentment customers feel toward developers when an app doesn’t work the way they thought it would.

A few strings in the iTunes beta code appear to be pop-up messages to notify customers about the state of rented apps: "Apps are automatically removed from your iTunes library at the end of the rental period" and "This app will be deleted from your computer" are a couple of the included statements.

A rental system through the App Store would be similar to the try-before-you-buy program that Amazon currently offers in its own Android Appstore. None of the language uncovered in the iTunes beta indicates whether rentals would carry a price or be free for their limited run.

The text does suggest that Apple will favor the consumer in rental transactions, in that customers won’t default into an app purchase at the end of a rental period; instead, the app will be removed from their devices. When so many negative reviews focus on an app not doing what a buyer expected it to (through either misdirection or misunderstanding), rentals could create a more positive app shopping experience.

But even with fewer negative reviews, developers could still lose out. Most iPhone users never use an app after the first download, according to a (now aging) study, so customers could dip in and out of apps they only need once without any monetary consequences.

The report is unconfirmed by Apple, as the company did not respond to Ars' requests for comment. If Apple plans to launch a rental program, we’ll likely hear about it at the iPhone event scheduled this week. Ars will be reporting live from the event Tuesday at 10AM PDT.




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All you need is Garage Band and iTunes.

With each new product that Apple announces, including the revamped Apple TV and the new Ping social network, Steve Jobs reveals a little bit more of his plan to dominate the media universe. But I can summarize that plan’s fatal flaw in one word: iTunes.

Considering that iTunes is the software behind one of Apple's money making streams, it is very unlike-Apple in terms of aesthetics and use. Steve Jobs insists, less is more but I wish he would take a look at iTunes.

"Go to sleep with iTunes Playing and it will stop after a specified amount of time. includes installation instructions"

So here’s the trick…the Option key. Hold it down, then select File, and notice that Show Duplicates has changed to Show Exact Duplicates.

CoverSutra gives you a handy and attractive way to control iTunes without having to leave your current application.

There is a surprisingly easy way to set up more than one library in both iTunes and iPhoto under a single user account.

Amazon breaks the DRM shackles and promises to give iTunes a run for their money.