March 12, 2014
Company Currently in Talks With Record Labels
Amazon is looking to take on Apple’s iTunes radio with its own music-streaming service, according to The Wall Street Journal.
The popular online retailer is reportedly in talks with major record labels — Universal, Sony, and Warner Music — for access to their music as it looks to get the preference-based music service up and running. Amazon apparently has offered the labels a total of $30 million for the use of their music, but it is not yet known if the labels are agreeable to that amount.
Much like iTunes Radio, Amazon reportedly plans to tailor its service so songs are chosen based on the users taste in music.
The service, which would be available to Amazon Prime customers, would have some limits placed upon it, the WSJ article said.
Amazon will reportedly limit the number of times a user can listen to a song or album and will encourage the user to buy the music they request often.
Amazon will be entering a market full of online radio services, some subscription and some streaming services.
Pandora currently holds the No. 1 spot with 31 percent of the U.S. streaming music service market share. In second is iHeartRadio with nine percent while iTunes Radio, a much newer service is in third place with eight percent.
Other players are Spotify, Rdio and Google’s All Access.