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.

By Electronista Staff