Amazon set to launch streaming music service

Jun 11, 2014
The Amazon logo is seen at a press conference in New York, September 28, 2011

US online giant Amazon is preparing to launch a streaming music service as early as this week, the New York Times reported Wednesday.

The report, citing unnamed sources, said the service would have a more limited catalogue than some rivals but would be offered free and without advertising for customers of Amazon Prime—a subscription service that includes free delivery, access to online movies and books and other advantages.

The Times said Sony and Warner Music had agreed to terms with Amazon but that no deal had been reached with the other major music publisher, Universal Music Group, which carries artists such as Lady Gaga and Katy Perry. The report also added that some newer hit songs may be excluded from the Amazon service.

Amazon has been rumored for months to have been working on a but talks appear to have been bogged down over royalties and licensing fees.

According to the daily, Amazon is offering small labels shares of a $5 million royalty pool, and bigger labels and distributors were offered larger one-time payments for access to certain titles.

The music could be an added bonus for customers of Amazon Prime, the annual fee for which was hiked to $99 from $79 earlier this year.

The move comes after Apple agreed to pay $3 billion for Beats Music to boost its streaming service and compete with the likes of Spotify and Pandora.

Amazon meanwhile is widely believed to be preparing to launch its own smartphone that would tie in with its Kindle tablet computers.

Explore further: Amazon adds subscriptions to its payment service

Related Stories

Indie music labels slam YouTube streaming plans

May 22, 2014

The independent music community on Thursday hit out at YouTube over proposals for a subscription music streaming service, which the Silicon Valley giant is expected to launch soon.

Google to launch online music service: report

May 10, 2011

Internet giant Google could launch an online music service as early as Tuesday to rival Amazon's "cloud" service, which allows users to store digital music online, the Wall Street Journal reported.

Recommended for you

ICANN chief stepping down in early 2016

May 21, 2015

The head of the group that oversees all Internet addresses will step down early next year, after a plan to end US oversight of the key nonprofit organization.

How alternative currencies could catch on and cash in

May 21, 2015

Alternatives to cash, like Bitcoin and Uber, may never replace the coins in our pockets or paper bills in our wallets, but they are creating significant social and economic impacts, and with some design adjustments, ...

Spotify introduces video, radio service

May 20, 2015

While saying that it is still a music company at heart, Spotify says it is expanding its lineup to include podcasts, news radio and video streaming.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.