Amazon Said to Be Close to Unveiling Music Streaming Service

Advertisement
By Ben Sisario, The New York Times | Updated: 12 June 2014 10:38 IST

Amazon is planning to introduce a limited music streaming feature as early as Thursday, according to several people briefed on the company's plans.

The new feature, which has been rumored in the music industry for months, will give subscribers to Amazon's Prime service access to thousands of songs free and without interruptions from advertising. But it will omit most new releases, and will not include the catalog of the Universal Music Group, the world's largest music company, according to these people, who spoke on the condition of anonymity.

Advertisement

Amazon, already one of the biggest retailers of music downloads, is adding the streaming feature as a sweetener for its Prime customers, whose annual subscription fee was recently raised to $99 from $79. Prime subscribers get free shipping on orders as well as other perks like free access to some movies and television shows. The new music feature will offer a wide but limited selection of titles, and for the most part will not include current hits.

An Amazon spokeswoman did not immediately respond to a request for comment Wednesday.

Advertisement

Licensing negotiations with record labels and music publishers began about six months ago, but were slowed by disagreement over financial terms that many music companies considered low.

Amazon told most small labels that in exchange for one-year licensing agreements they would be offered shares of a $5 million royalty pool, to be divided by a market-share formula of Amazon's choosing, said two people who were involved in the negotiations. Bigger labels and distributors were offered larger one-time payments for access to certain titles. Amazon initially set out offering about $25 million in these fees, but it is unclear whether negotiations resulted in any change to this figure.

Advertisement

Sony and Warner Music, two of the three major labels, have signed such deals. But Universal, whose catalog includes stars like Lady Gaga, Katy Perry and Kanye West, never came to an agreement with Amazon.

After Amazon's proposed contracts for songwriting rights were rejected by many music publishers, the company used an outside firm to obtain "compulsory" licenses through federal copyright provisions. That process is common, but implies that Amazon may make more limited use of songs than it had originally contemplated.

Advertisement

(Also Read: Amazon Stops Taking Advance Orders for 'Lego' and Other Warner Videos)

With a relatively small catalog, Amazon's service is not seen as a major threat to companies like Spotify, Rhapsody and Beats, which offer millions of songs. But Amazon's sheer size gives it a big advantage. The company recently announced that it had 244 million active customer accounts, and it is estimated to have more than 20 million Prime subscribers.

Amazon's scale may help it reach the millions of casual music consumers who so far have remained hesitant to sign up for any streaming service. That represents a big concern for the music industry as the streaming market matures and gradually replaces CDs and downloads as the way most people listen to music.

© 2014, The New York Times News Service

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Googlebook Pre-Orders Begin Later in September on This Date
  2. Delta Exchange Partners With India-Afghanistan T20I Series
  3. Oppo Find X10 Pro Max Among First Phones to Launch With 2nm Dimensity 9600 Pro
  4. Samsung Galaxy A18 4G Launched With Exynos 1610 SoC, Gemini Support
  5. Vivo V80 India Launch Officially Confirmed, Design Teased
  6. Xiaomi 18 Pro Series Launch Officially Teased With New Rear Screen Feature
  7. Flipkart Big Billion Days 2026 Dates Are Out: Bank Discounts, Deals Teased
  8. Oppo K14 Lite Debuts in India With 7,000mAh Battery
  9. Mac Mini M6 Listing Reportedly Reveals Performance Gains Over M5 Chip
  10. Xiaomi 18 Pro Could Launch With This Unreleased Snapdragon Chipset
  1. Microsoft Announces Windows and Surface Event for October to Showcase Local AI, Next Generation of AI PCs
  2. Itel Muzik 450L Feature Phone Launched in India With 2-in-1 Speaker: Price, Specifications
  3. Xiaomi 18 Pro Spotted on Geekbench With Unreleased Snapdragon 8 Elite Series Chipset
  4. Samsung Galaxy A18 4G Launched With 50-Megapixel Main Camera, Exynos 1610 SoC: Price, Specifications
  5. Oppo K14 Lite Launched in India With 6.75-Inch Display, 7,000mAh Battery: Price, Specifications
  6. iQOO Pad Ultra Geekbench Listing Reveals Snapdragon 8 Elite Extreme Gen 6 Performance Figures
  7. Vivo Watch 6 Design Revealed Ahead of September 21 Launch; Confirmed to Come With Titanium Body and BlueOS 4
  8. Apple’s iOS 18 Warranty Terms Under Consumer Regulator’s Scrutiny in India: Report
  9. Xiaomi 18 Pro Series Launch Officially Teased With New Rear Screen Feature
  10. Meta One Subscription Launched in India as a Single Plan for WhatsApp Plus, Instagram Plus and Facebook Plus With Higher AI Limits
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.