Amazon To Start Apple Cloud Music Challenger In July
June 17, 2012, 12 years ago
According to Bloomberg, Amazon.com Inc. reached agreements with the four major US record companies to start a music service that lets users store songs on a remote server and access them online, people familiar with the matter said.
Amazon plans to start the US service in the first week of July, with Europe availability shortly after, said the people, who asked not to be identified because the plans are private.
With the agreements, Amazon’s music service will work similarly to Apple Inc.’s iTunes, letting multiple devices access a centrally stored music collection. Amazon, whose Kindle Fire tablet computer sells for $199 - a lower price than Apple’s least expensive iPad - is seeking to make money by offering higher-margin digital content on the device, such as books, music and movies.
Sally Fouts, a spokeswoman for Seattle-based Amazon, declined to comment. Vivendi SA’s Universal Music Group, Sony Corp. (6758)’s music business, EMI Group Ltd. and billionaire Len Blavatnik’s Warner Music Group declined to comment in e-mail statements.
Amazon, the world’s biggest Web retailer, gained 1.8 percent to $218.35 at yesterday’s close in New York. The stock has climbed 26 percent this year.
Read more at Bloomberg.
