Leaked document hints at upcoming Amazon streaming music service

Rumors suggest Amazon is planning to launch a streaming music service that may tie into its Prime service. A leaked document published by Digital Music News claims to show the terms of the contract being offered to smaller publishers and digital rights owners. The contract being handed to smaller groups is a “take it or leave it” offer that allegedly allows little room for negotiation in the contract. Larger publishers supposedly are receiving more favorable terms and a lump sum payment for signing onto the Amazon service. As summarized by Digital Music News, details of the Amazon contract include the following significant provisions: (a) Amazon will primarily use its streaming music service to boost Amazon Prime subscriptions and revenues. ”It will be included as part of Amazon Prime as an additional benefit to customers at no additional cost and will be integrated into the current Amazon music experience,” Amazon is communicating to all prospective rights owners. (b) That is part of a larger bundled media offering that includes streaming television and free books (and, of course, free two-day shipping). (c) It is unclear how much streaming access Amazon will offer, though conditional downloads (however defined) will be part of the offering. ”The Service will offer Amazon Prime customers on-demand streaming and limited download access to a select amount of curated music,” the letter to rights owners continues. (d) Outside of major labels and the largest content owners, independent labels will not be able to negotiate their terms. The contact is ‘take it or leave it,’ according to sources. (e) It is unclear when this service will be launched (even to Amazon executives, most likely), though rights owners are being asked to sign the following by May 1st, 2014. Earlier rumors suggest Amazon may bundle music into its Prime Service to make it more attractive to potential subscribers. The online retailer may not make money directly off the music streams, but it could boost its Prime subscriber count — more Prime members would mean more money for Amazon as Prime members tend to buy more products from Amazon than non-Prime members. Are you interested in a streaming music service from Amazon? Or is the market already too crowded? Let us know in the comments. [Via GigaOM] Continue reading →

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