Music in the cloud

Connected devices like Apple's iPhone and iPads or Google's range of Android-based phones will be the next battlefield for music, say various industry watchers.

Labels have been hoping that the introduction of new cloud-based music services from Apple and Google would be a major boost for winning over consumers who want to be able to access their music libraries, discover new songs and make impulse purchases wherever they have Internet access.

Apple bought cloud-based music company LaLa Media last December and closed it in April, leading observers to expect the launch of an Apple-branded cloud service. But on Wednesday Apple unveiled a social media enabled-version of iTunes, leaving some executives a little underwhelmed for now.

Perhaps not by coincidence Google also bought a remote media company called Simplify Media in May and has also promptly closed it down. It has yet to announce any plans for Simplify.

"If they get it right it will hasten the transition by consumers from music you have to own to music you need ubiquitous access to," said Ted Cohen, a former EMI executive who runs TAG Strategic Partners.

On Nasdaq, Google rose by $1.69 to $462.02 and Apple was up 64 cents at $250.97 late Thursday afternoon.