Amazon looking to expand Prime with music streaming

The Wall Street Journal confirmed that Amazon is “hoping to offer an on-demand music-streaming service” to Prime customers—but it also cites people familiar with the matter as claiming that it “may limit how much a person can listen to any given song.”

Amazon has told record companies it would pay them out of a fixed pool of money, according to people familiar with the matter, instead of compensating them based on how often users listen to their songs. Music companies are seeking to withhold their newest music from the service, a person familiar with the matter said, though details were unclear as the negotiations are in process. The retailer has told some music companies that it plans to impose time limits on how long a user can listen to a given song or album on the service. The average duration of that limit couldn’t be learned.

I wonder how Amazon will succeed in this area and how it will sell the Prime offering at the higher cost when people won’t want all of their services and cost. The other concern is that whilst Prime may appear good value now there is always the chance they could raise their prices even further.

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