, Inc. (NASDAQ:AMZN) Adds Music Streaming To Services


Dallas, Texas 05/30/2014 (FINANCIALSTRENDS) – Prime members get access to relatively new songs, Inc. (NASDAQ: AMZN) is looking to offer members of its Prime service a larger number of songs.

The company, among the leading online retailers across the world, is entering the streaming sector for the first time. The thought process behind the move is to offer a combination of old and new songs on the On-Demand platform. Prime is expected to be launched in June of July of this year. It will not include songs and albums lesser than six months old.

Just like the video on demand service, the music section will offer only content that has been purchased from top labels at a discounted price. This is a departure from existing practices where companies have tried to attract clientele with the promise of premium titles.

Large client base already acquired

AMZN has managed to get close to 20 million subscribers for its service. This clientele have been acquired on the basis of its reputation and brand power. The company already has a number of services like e-books, movies and a database of TV shows. Combined with a library where title can be lent for the Kindle reader, the Prime Service offers another aspect to its clients.

AMZN has recently increased the annual price for the service to $99. To help placate its subscribers, the company has struck deals with a number of major as well as independent music companies.

AMZN now has restricted access to the archives of these companies. They can choose the songs and the albums that can be added to the music service’s database. This is similar to its agreement with a major television company where it can broadcast earlier shows on its video on demand network.

The music industry is now focusing on such deals. The reason is due to a 12% decline in sales for the digital sector in comparison to 2Q,2013. Last year was the first time that the industry experienced a downward trend in sales.