SAN FRANCISCO (CelebrityAccess MediaWire) — Three months after their splashy debut, Google has been warning record labels that the cloud-based Google Music has failed to live up to expectations in both revenue and customer adoption.
According to a Greg Sandoval at CNET, Google is not panicking as the service has only been live for a short period and the company has yet to fully engage in marketing for the service. Moreover, they hope that mobile phone and tablet launches using Google's Android operating which are planned for later this year will help expand the services customer base.
Sandoval noted that at the time of Google Music's launch, there were 200 million Android-powered devices that have been activated in the world and an adoption rate of just 10% would mean 20 million customers.
Google launched the service in November, 2011 in an effort to challenge competitors Apple and Amazon's digital music store, however, they launched without any content from one of the four major labels – Warner. – CelebrityAccess Staff Writers