What could a Google Music service do to iTunes?

This morning, Michael Arrington over at TechCrunch has it from multiple sources that Google is prepping some sort of music service for the US. It is unknown if it is a download service to compete with the likes of iTunes and Amazon or if it is a streaming service such as Pandora or Last.fm. What is known is Google has a tendency to disrupt the market.

From GMail to Google Docs to search, Google has shown it can hit a home run. In contemplating Google’s big push into mobile with Android, I can’t help coming back to this move must have something to do with getting music on Android phones. Here are two scenarios that Google could disrupt the market:

Download service

If Google has a download service for devices running Android (or just anyone with a computer) the party most likely harmed is Amazon. Apple’s products are so tightly integrated with iTunes that most consumers don’t give downloading from Apple a second thought: it just works and it is darn easy. Unless a significant value proposition is made, little will change.

Streaming service

If Google plans to stream music from the net (either for devices or just through a browser) we still might see some changes in music purchasing behavior. If you’ve tried Pandora’s app on the iPhone while long distance driving, you might be as impressed with the idea as I am. Having all that music at your finger tips is powerful and dare I say, fun.

Integrating this concept into Android or into browsers opens up the advertising opportunities and Google is an advertisement serving company. My money is on Google getting into the streaming game though it will be interesting to see if they can make it simpler than Pandora, whose UI couldn’t be more streamlined.

Read: [TechCrunch]