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Rumor: Amazon in talks with record labels for Prime music streaming

updated 06:26 am EST, Fri February 28, 2014

Claimed discussions with labels stalled over music licensing discount request

Amazon Prime subscribers may receive another benefit in the future, if a rumor is found to be true. It is claimed that the online retailer is looking to expand the Prime bonuses from the current Kindle Lending Library and Prime Instant Video offerings to include music streaming, with Amazon said to be in negotiations with the larger music labels to make the service a reality.

Sources of Recode reveal Amazon is engaged in "more serious talks" with labels, and have done so for the last few months. Unfortunately, the same report sources claim Amazon is far from gaining label support, as executives are apparently asking for a considerable discount on royalties, compared to what Spotify, Beats, and Rhapsody already pay.

Amazon has apparently been looking towards updating its music services for some time, building on top of its digital locker and AutoRip functionality. The company hired Sony music executive Michael Paull and business development manager for Rhapsody and MOG Drew Denbo in late 2012. Last year it picked up Adam Parness, who previously worked for Rhapsody on licensing.

Adding music streaming to Prime may force Amazon to raise the price of the subscription, with the company recently warning it may have to raise the cost in the United States by up to $40, bringing the cost to $119 per year. It has recently raised the rates in the United Kingdom and Germany, though at the same time it introduced video streaming to the service, bringing it in line with the US offering.



By Electronista Staff
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