Amazon offers limited streaming music service with Prime

SAN FRANCISCO Thu Jun 12, 2014 2:28pm IST

A man holds a laptop with the logo of the online retailer Amazon during a protest by the Attac pressure group outside the Chancellery in Berlin demanding from G20 summit participants the implementation of a unitary tax to fight tax evasion, September 5, 2013.  REUTERS/Thomas Peter/Files

A man holds a laptop with the logo of the online retailer Amazon during a protest by the Attac pressure group outside the Chancellery in Berlin demanding from G20 summit participants the implementation of a unitary tax to fight tax evasion, September 5, 2013.

Credit: Reuters/Thomas Peter/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Amazon.com Inc launched a streaming music service on Thursday that comes free with its $99-a-year Prime membership program, but offers a smaller selection of recent hits than rivals Spotify and Apple Inc's Beats Music.

The new feature, dubbed "Prime Music," allows subscribers of the $99-a-year program to stream or download more than a million songs without added fees or interruptions from advertisements.

This is one of many steps Amazon has taken in recent months to broaden the appeal of Prime, which includes perks such as free two-day shipping, after increasing its price to $99 from $79.

But the selection on Amazon's streaming service is less robust than Spotify and Beats, which both offer more than 20 million songs. Amazon will also have fewer new songs and will not include songs from Universal Music Group Inc's catalog, which includes work from artists Kanye West and Lady Gaga.

Amazon's head of digital music, Steve Boom, acknowledged those shortcomings, but added that because the service is free with Prime, it offers more bang per buck than standalone streaming services that can cost $10 a month.

"If there are a few tracks you want to buy, the cost of doing that in our store will be dramatically less than paying $120 a year for, frankly, a lot of music people don't listen to," Boom said in an interview.

Amazon's own data shows that a "substantial" portion of the 25 million to 30 million songs sold on its website are never purchased, he said. He declined to elaborate.

Universal, the world's largest record company, and Amazon are still in negotiations about the service, he said, declining to elaborate on the negotiations or its sticking points.

Warner Music Group, Sony Music Entertainment and other smaller labels have signed on to the Amazon service. In some of its deals with labels, Amazon will have to wait up to six months after songs are released to add them to its service. In other cases, Amazon will be able to add new songs immediately.

The new service is a reflection of Amazon's aggressive push into new areas such as digital content and hardware. Next week, Chief Executive Officer Jeff Bezos is expected to unveil Amazon's first smartphone during an event in Seattle.

FILED UNDER:

Tech Wrap

Reuters Showcase

S&P on Budget

S&P on Budget

Budget shows commitment to keep fiscal deficit low - S&P.  Full Article 

New Phone

New Phone

Samsung unveils sleek new Galaxy phones to battle Apple.  Full Article 

MH370 Search

MH370 Search

Interview: Australia says hunt for missing MH370 jet may be called off soon.  Full Article 

Blogger's Murder

Blogger's Murder

Bangladesh says arrests main suspect in U.S. blogger Avijit Roy's killing.  Full Article 

England under Fire

England under Fire

Changes demanded after England's latest World Cup flop.  Full Article 

Anit-Putin Rally

Anit-Putin Rally

Anti-Putin protesters rally in New York after Nemtsov's murder.  Full Article 

Brit Awards

Brit Awards

Brit awards shake up British album chart, boost Sam Smith.  Full Article 

Lathmar Holi

In Pics: Lathmar Holi

Images of "Lathmar Holi" at Nandgaon in Uttar Pradesh.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage