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| February 27, 2014
Report: Amazon Is In Talks To Create Its Own Streaming Music Service
Apple may have yet another competitor in the streaming music industry. According to Re/code, Amazon is in talks with music labels about unveiling its own subscription service. The report says that Amazon has been conducting serious talks with music labels about its proposed service. But there seems to be a major roadblock:
One label source reports that Amazon isn’t close to getting a deal done, because its executives are asking for a substantial discount on the pricing the labels have given to other services, like Spotify, Rhapsody and Beats.While the service would compete with iTunes Radio, Spotify, Pandora, Beats, and others, Amazon's main drive seems to be improving its Prime subscription service. As many know, for $79 per year, subscribers receive free two-day shipping for their items along with other discounts and services. One of the nicest advantages is Prime Instant Video that offers a huge amount of streaming video content. And since Amazon is strongly considering increasing the Prime cost by up to $40 per year, the company seems to be hoping that free music would help keep subscribers happy. While I’m a happy Prime member, I don’t think the idea of another a streaming music service is all that desirable. The dance card is getting pretty crowded already. For other news today, see: Apple Is Now Involved In The Oscar Pistorius Murder Case, A Mobile Streaming Guide To The 2014 Academy Awards, and Fortune Once Again Calls Apple The World's Most Admired Company.