Is there more room for another entrant in the crowded streaming music space? We’ve seen more than one big-name service hit the scene over the past several months—iTunes Radio, Google Music All Access, Beats Music—and it sounds like another option will soon be available. Re/code reports that Amazon is currently engaged in serious talks with music labels over a potential subscription service, one that could be bundled in with Prime. Combine this report with the possibility of an Amazon set-top box, and it makes sense why Amazon might raise the price of Prime later this year.
Despite ongoing discussions, however, Amazon and music labels are allegedly in disagreement over costs associated with the service. According to label sources, Amazon has asked for a substantial discount discount compared to what other services, such as Spotify and Rhapsody, pay. Regardless, talks have apparently been going on for the past few months, so it would seem Amazon is willing to negotiate.
As Re/code notes, Amazon has the talent necessary to offer such a service, and it certainly has the resources. However, the challenge will be for Amazon to properly market streaming music when there are so many other alternatives. As an example, Amazon’s streaming video service, which is part of Prime, is apparently underused by subscribers because most Prime members don’t even know they have the option.
If such a service does eventually come to be, it’ll likely be similar to Spotify and Google Music All Access, and give users the ability to purchase music directly through Amazon. If Indeed Amazon “isn’t close” to reaching the necessary agreements, it’ll probably be awhile before something of substance turns up.