Verizon to offer Google Play Music as a free promo?
Talks are characterized as being in the early stages, and both sides could simply walk away. Google is looking for a way to move on from the early adopter subscribers it has already signed up, to get more mainstream users. Between 250,000 and 500,000 people have signed up for Google Play Music All-Access although that figure includes those who are still receiving a 30 day free-trial of the service.
Part of the problem that Google faces with a potential Verizon deal is that offering a 30-day free trial to Big Red subscribers is going to be costly to Google since royalties to the record labels still have to be covered. One music executive in the loop says that Google wants Verizon to cover the entire cost while Verizon refuses to do so. The labels are eager for any sort of deal to happen so that the market can expand.
One solution would be for Verizon to guarantee to Google a minimum number of subscribers, or pay for marketing instead of throwing hard dollars into the kitty. The record labels could agree to take a haircut on their licensing fees, or pay for advertising to account for their part in the deal.
1. PapaSmurf (Posts: 4219; Member since: 14 May 2012)
Why can't T-Mobile offer GPM for free? :(
Verizon doesn't want to pay for it but would benefit them and Google in the long run. More people signing up for unlimited music + more data being used. Win win situation.
2. Zero0 (Posts: 535; Member since: 05 Jul 2012)
Because T-Mobile is hopefully stripping its pricing to basics. You pay for a network and get nothing more. Want streaming? Get it separately, because you have money to spare now.
Verizon and AT&T charge way more so that they pack in all kinds of extras (subsidies, bloatware). If you don't use those extras, you're getting ripped off. Not that T-Mobile doesn't have any of these things (MLB At Bat was free for a bit), but I think they're cutting down.
3. dsDoan (Posts: 205; Member since: 28 Dec 2011)
If you jump on a carrier for 30 free days of music streaming, you should be letting someone else handle your finances.
4. rallyguy (Posts: 364; Member since: 13 Mar 2012)
Google offered a free 30 day trial to everyone a few months ago. Why is it such a big deal to do it again to a few million? Chances are not too many will sign up though.