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Amazon is reportedly working on a music-streaming service

Sarah Silbert
02.27.14
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Amazon does much more than dominate the online-shopping space. With its Prime instant video service, complete with original series and exclusives, the company has taken on Netflix -- and it looks like challenging Spotify and other music services is Amazon's next step. According to sources who spoke with Re/code, the company is currently in talks with music labels to offer a subscription-style service. The news is hardly surprising, but it's unclear when exactly an Amazon music-streaming platform would arrive.

According to one "label source," the company's demand for deeper discounts is holding up its talks with labels. When the back-room negotiations come to a conclusion, though, the cost of buying those music rights will likely be worth it, especially considering hints that the annual Prime subscription could increase by up to $40. In theory, at least, customers would be more likely to shell out that fee if they received more bundled features like free music streaming. However, Re/code makes a good point in noting that many Prime subscribers aren't even aware that they have access to instant video, so perhaps a streaming service would help Amazon highlight the privileges of Prime membership -- if the music service is bundled with Prime at all, that is.

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