Amazon working on music streaming service

Saqib Shah
February 28, 2014

Rumours and speculation concerning Amazon’s extra-curricular activities are ubiquitous, the company is said to be working on a TV streaming hardware device and a console.

Now it is being reported that Amazon also has a music streaming service in the works. The company is said to be in talks with music labels to provide a Spotify-like music streaming service for Prime users.

However, Amazon is still very much at the negotiation stage – which makes it unclear as to whether its new venture will ever see the light of day.

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.

The logic behind the concept is to make Amazon Prime – which also includes access to the Amazon Instant video streaming service – even more attractive to subscribers, who may soon have to pay up to $40 more for the service.

However, analysts claim  that streaming usage is low on Amazon Instant – mainly  because many Prime subscribers have no idea they have access to popular movies like The Avengers and TV shows like The Americans – which does not bode well for Amazon’s expansion plans.


About the Author

Saqib Shah

Tech/gaming journalist for What Mobile magazine and website. Interests include film, digital media and foreign affairs.

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