CNet has published an article based on reports they have been hearing from Google insiders.
The report claims that Google is not happy with the kind of response Google Music has received since the launch.
CNet reports that the customer adoption and revenue generated from the service are much lower than what they had expected.
But there are a couple of things that are worth considering here:
1. Google Music currently does not have access to Warner Music Group content. This means that a lot of music is simply not available on their network. Users tend to stick to services where they can find most of the music they want to acquire.
2. Google does not provide native streaming apps for Windows, Mac, Linux and Apple iOS. In fact, the only native app available is for Google Android. Users have to rely on their web app to access their music on other platforms.
3. Google has not been promoting Google Music as much as they are promoting their other services like Google Plus.
4. Google Music is selling music only in the US market. This alone means that only a fraction of their overall user base can buy music from this network. Apple iTunes on the other hand is available in many more markets.
5. Music streaming services like Spotify, Rdio, Pandora are gaining popularity. People are switching from buying songs to subscribing to services offering access to millions of songs for a fixed price per month. Google Music does not offer a similar service.
Google is working on improving upon some of these factors. Rumors claim that Google is working on hardware solutions for home entertainment that are likely to feature integrated support for Google Music service. But the fact remains, Google needs to do more to make Google Music a viable alternative to Apple iTunes for more users.