Report: Amazon.com In Talks With Major Labels To Launch Digital Music Service
February 16, 2006 at 1:07 PM (PT)
Web retailing giant AMAZON.COM, INC. is in "advanced talks" with UNIVERSAL MUSIC GROUP (UMG), SONY BMG, WARNER MUSIC GROUP (WMG), and EMI to start a digital music service to compete with APPLE's iTUNES MUSIC STORE, reports REUTERS. While deals with the four major labels have yet to be reached, sources close to the proceedings say that the music service could be launched as early as this summer.
Sources say that AMAZON is reportedly considering a subscription music service that would include a discounted portable music player bearing the AMAZON brand, an approach borrowed from the wireless phone industry, which sells lower-cost phones in exchange for long-term contracts for subscription services.
"That's a sensible approach," said INSIDE DIGITAL MEDIA analyst PHIL LEIGH. "It's going to take something to successfully attack the iPod."
The big test is whether consumers would be willing to subscribe or buy anything that may not work on the iPod, LEIGH added. For more info on this story, click here.