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Monday Google launched in China Genuine music download service free of charge. As a result, Google rival Baidu in China at the Nasdaq stock market Monday in regular trading down 5.55 percent.
“Wall Street Journal” reported Monday that Google, including Warner, Universal, EMI, Sony’s four major record companies, including more than 140 record labels to reach nearly 1.1 million licensed songs, the user can music through Google search and download.
Google will search the music section at some embedded ads which will be part of the advertisement fee to be returned to the form of royalties to record companies in order to reach users can download free music and record companies and musicians can also profit.
“Wall Street Journal” emphasis, Google and its partners, “hoped that the new service will be able to Google’s competitors in China, especially to attract users from Baidu.” Baidu is still firmly in the rule of the Chinese search market. Google will be near half of the advertising revenue paid to the record companies, while the other half will be paid to the service Google partner in China Whale Music Net. Google through the introduction of genuine music search service for more traffic.
Standard & Poor’s analyst (Scott Kessler) investors at Monday report that Google’s music service will help Google to get more Chinese in China’s market share. He went on to reaffirm Baidu shares The “sell” (Baidu) rating, as well as Google shares “strong buy” (Strong Buy) rating.
Affected by this, Baidu stock market Monday on the Nasdaq in regular trading to close at 172.99 U.S. dollars, down 10.16 U.S. dollars than the previous, a decrease of 5.55%. In after-hours trading, Baidu shares fell 0.48 U.S. dollars, a decrease of 0.28 percent, to close at 172.51 U.S. dollars. In the past 52 weeks, the lowest price for Baidu 100.50 U.S. dollars, up to 382.90 U.S. dollars.