Google opens music site in China

Move puts service head-to-head with Baidu

By CLIFFORD COONAN

Google has become the latest org to tackle China's piracy problem head on with the launch of a music search service that will give users access to free downloads of licensed songs, while capturing advertising revenue for music providers.

It will also put Google head-to-head with Baidu.com, which has market share of about 65% vs. Google's 26%, but Baidu is dogged by lawsuits claiming it facilitates copyright violations through downloads of unlicensed music.

Google said the service would initially allow Chinese users to search tens of thousands of Chinese songs by singer or song title on its website and download them using Top100.cn, a Chinese music website co-founded by basketball star Yao Ming.

Advertising revenue from the service would then be shared between Top100.cn and its music partners.

"The Internet industry should by no means stand in the opposite camp against the music industry. Google always believes profoundly that mutual interest, rather than monopoly, is the key to sustainable growth," said Google China prexy Kai-fu Lee.

Around 85% of Chinese music fans listen to music online, but nearly all downloads of music files in China are pirated, which has long frustrated the majors keen to make money in China. It has also damaged the domestic music industry -- most artists are forced to make money from ringtones or concert outings.

Earlier this week, the indie U.S. distributor IODA linked up with ringtone distributor R2G to form the Wawawa Music Store site, which will allow customers in China to subscribe and download up to 88 MP3s a month for 20 yuan (just under $3).

Both services will be limited to China, which is the world's biggest Internet market by number of users.