Amazon may potentially be planning to introduce a streaming music product that could be bundled into its Amazon Prime service, competing with existing streaming music services from companies such as Spotify, Pandora, Apple and Google according to a report from Re/code. Amazon is reportedly in talks with major music labels with the aim of releasing a music service in the future, hoping for low rates much like Apple did when negotiating for iTunes Radio. The following was mentioned regarding the matter:

One label source reports that Amazon isnít 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.

Still, label talks have been going on for the past few months, sources say.
For those of you who didnít already know, Amazon already offers its Amazon Prime subscribers a Netflix-style movie and television service, Amazon Instant Video, but music could entice customers to pay more. Earlier this year, Amazon said it may raise the price of its Amazon Prime service by up to $40, increasing the cost of the service from $79.99 to $120. The company already offers a Cloud Player service for playing music purchased or stored using Cloud Drive, which is similar to iTunes Match as well.

Apple previously released its own streaming music service, iTunes Radio, which is built into the Music app of iOS 7. The service is radio-based, allowing users to discover new music through stations based on specific artists and songs, much like Pandora. Itís unclear whether Amazonís service would mirror Appleís, or if it will more closely resemble services such as Spotify, which allows users to search for and play specific songs.

Similar to Amazon, Apple was originally aiming to pay lower prices than the industry standard at six cents per 100 songs streamed or half of Pandoraís royalty rate but the company was unable to reach deals with music labels at such low rates. The Cupertino California company ended up agreeing to pay labels 0.13 cents for each song played along with 15% of net advertising revenue and itís likely that Amazon may have to make a similar deal to bring a music service to fruition.

Weíll just have to wait and see.

Source: Re/code