Amazon is rumored to be developing a subscription music streaming service similar to that of Spotify or Rdio.
According to a report in The Verge, Amazon has been in talks with various music companies about starting its own subscription music service. The report said that the talks have been informal, centering on an on-demand service.
Amazon already has the infrastructure needed to launch a service like this with its existing cloud music storage and the Cloud Player, which allow Amazon customers to stream music from the company's servers.
Amazon isn't the only major internet media company to show interest in developing its own music streaming service, as both Google and Apple are reported to be looking into similar services. Google has reportedly been in talks with record companies and music producers about integrating a subscription music service into both YouTube and Google Play. Apple is reported to be in negotiations for a Web radio service, similar to the service Pandora offers its users.
Should Amazon, Google and Apple enter the arena of subscription-based music streaming, they'll find themselves in what is already a packed house. Spotify, Pandora, Rdio, GrooveShark and Rhapsody already offer services of this kind. Rdio just updated its iOS app with a new user interface and social integration. Spotify has picked up 1 million paid subscribers since December.
Source: http://www.brighthand.com/default.asp?newsID=19925
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