Amazon buys Amie Street to focus on streaming music
updated 10:15 am EDT, Wed September 8, 2010
Amazon snaps up AmieStreet for streaming
Amazon today acquired Amie Street to improve its music efforts. The site will be shutting down its unique store with demand-based pricing and will instead focus on Songza, its recommendation-based Internet radio service. Customers will have until September 22 to use what's left in their accounts but will get a $5 credit on Amazon MP3 if they have a US Amazon account.
The two didn't provide terms of the deal, although it's likely the deal is small enough that Amazon isn't obligated to reveal details. Neither touched on long-term plans.
Amazon is one of the largest music retailers in the US, with 12 percent share, but a significant part of its sales remain tied to physical CDs and have left it with a significantly smaller share than Apple's iTunes. It most closely follows Apple's business model of per-track sales, but Amie Street may give it a quick route into a subscription streaming service or similar that could provide an alternative to the older business model. Apple has objected to subscription music but is believed to be in long-term discussions for streaming existing libraries that may have helped push Amazon into making a deal.
