Just one day after Apple officially announced its acquisition of Beats Music, rumor has it Amazon will launch a music-streaming service by this summer.
If it moves forward, the music-streaming service will be available to Amazon Prime members, reports Buzzfeed, which cited unnamed source. The service is expected to launch in June or July and work with numerous mobile devices and computers, reports The Los Angeles Times.
The Amazon service will go a different route than Spotify, Beats Music and Rdio, which all offer nearly comprehensive catalogs. Amazon instead will offer a “potluck” selection of songs that are six months old or older. So the question is what kind of market there is for slightly old songs.
The rumors of the service seem to be true, as Amazon has already made deals with Sony Music Entertainment and Warner Music Group, Buzzfeed said.
Streaming music services are becoming a thriving business. While Nielsen data shows that digital music sales have dropped about 13 percent in the first quarter of this month, revenues for subscription streaming services increased 51 percent in 2013. Spotify, the top subscription music-streaming service, has 10 million paying users. And Amazon has been luring in subscribers to Prime, and the music streaming service should pull in even more.
“Even with a $20 price increase in March that bumped its annual cost to $99, many users already considered Amazon Prime one of the Web’s best bargains. For $8.25 per month, members get two-day shipping on many purchases and the ability to borrow Kindle books and watch streaming movies and TV shows for free,” reports CNN.
One of the reasons that Apple is rumored to have been so interested in Beats is its streaming service. Sounds like more competition between the two is coming. But it will be interesting to see how Amazon will fare with the tunes they plan on offering.