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. OnePlus 16 Said to Feature 185Hz Refresh Rate Display
  2. Drishyam 3 OTT Release Date: When and Where to Watch Mohanlal's Crime Thriller Online?
  3. Redmi Turbo 5 With 7,540mAh Battery Arrives in India at This Price
  4. Vivo T5 Lite 5G Key Specifications Leaked Ahead of Anticipated India Launch
  5. Redmi Turbo 5 Launch Today: Know Price in India, Specifications and More
  6. EA Advertising to Bring Dynamic Stadium Ads, Branded Challenges to Games
  7. Athiradi OTT Release Date: When and Where to Watch it Online?
  8. OnePlus Nord Buds 4 Will Launch in India On This Date
  1. Pudgy Penguins to Discontinue 'Pudgy Party' Mobile Game in Favour of New Web Based Game
  2. Meta Introduces AI Mode on Facebook With AI-Powered Search for Public Posts, Reels
  3. Assassin's Creed Shadows' Final Update Adds New Story Quest and Crossover Projects With Black Flag Resynced
  4. Redmi K90 Ultra Launch Timeline Confirmed, Pre-Orders Open Ahead of China Debut
  5. OnePlus 16 Tipped to Feature BOE Display With 185Hz Refresh Rate, Slim Bezels
  6. Samsung Galaxy Book 6 Edge Launched With Snapdragon X2 Elite Chip, Galaxy AI Features: Price, Specifications
  7. Athiradi OTT Release Date: When and Where to Watch Tovino Thomas’ Malayalam Action-Comedy Online
  8. Vivo T5 Lite 5G Leak Reveals Display, Battery and Camera Details Ahead of Anticipated India Launch
  9. Drishyam 3 OTT Release Date: When and Where to Watch Mohanlal’s Crime Thriller Online?
  10. OnePlus Nord Buds 4 India Launch Date Revealed Along With Key Specifications, Features
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.