Will They Or Won't They? Amazon Still Talking To Labels About Streaming Service
February 27, 2014 at 4:17 PM (PT)
In case you were worried that consumers don't have much of a choice in streaming music services, rumors of AMAZON starting its own service have resurfaced again, RECODE.NET. Even so, one source believes "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 label talks nevertheless continue, the streaming service can be seen as an extra reward for AMAZON's "PRIME members, who pay $79 a year and get free two-day shipping, among other perks. So if they’re willing to do that — under the theory that the cost of the video is worth it, because PRIME members buy a lot more stuff from Amazon than nonmembers — why not make the service even more attractive with free music?"
AMAZON has publicly noted that it may raise the price of PRIME by as much as $40, to $119 a year, which ostensibly would more than cover a music streaming service expense. The company has also been hiring a number of executives with digital experience from the labels and other streaming services.