Amazon Closing in on Deals With Major Music Labels

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Amazon Closing in on Deals With Major Music Labels
[ Business]

Earlier this week the Amazon Cloud Player app was released for the iPhone. The app allows customers to stream or download music from their Amazon Cloud Drive, and functions as a normal audio player. Now it looks as if Amazon is looking to expand its service with deals involving the major U.S. record labels.

According to CNET, Amazon has already hammered out agreements with UMG, EMI, and Sony. It will soon complete negotiations with Warner on a similar agreement.

Why Amazon is just now reaching agreements with the record companies is anyone’s guess. The CNET article floats the idea that the company might be trying to match Apple’s iTunes Match service, which, for a subscription fee, will turn a user’s non-iTunes-bought music into a high quality version sitting in their iCloud drive – all without any uploading involved. Currently, Amazon Cloud Drive requires users to upload all of their music before it can be streamed. Amazon certainly has the music library to make an iTunes Match-like service possible.

It’s also possible, though, that Amazon is planning a subscription service similar to Rhapsody or Spotify. The Amazon Cloud Player could be augmented to stream free music with ads, or to give users wide access to Amazon’s catalogue of music for a monthly subscription fee. Whatever Amazon chooses to do with its new music license deals, though, it’s clear that more options and content are headed to customers

Amazon Closing in on Deals With Major Music Labels
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