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Old Feb 27, 2014, 05:15 PM   #1
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Amazon May Add Streaming Music to Prime Service




Amazon may be planning to introduce a streaming music product that could be bundled into its Amazon Prime service, competing with existing streaming music services from companies like Spotify, Pandora, Apple, and Google reports Re/code.

Amazon is reportedly in talks with major music labels with the aim of releasing a music service in the future, hoping for low rates much as Apple did when negotiating for iTunes Radio.
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One label source reports that Amazon isn't close to getting a deal done, because its executives are asking for a substantial discount on the pricing the labels have given to other services, like Spotify, Rhapsody and Beats.

Still, label talks have been going on for the past few months, sources say.
Amazon already offers its Amazon Prime subscribers a Netflix-style movie and television streaming service - Amazon Instant Video - but music could entice customers to pay more. Earlier this year, Amazon said that it may be raising the price of Prime by up to $40, increasing the cost of the service from $79.99 to $120. Amazon already offers a Cloud Player service for playing music purchased or stored using its Cloud Drive, which is similar to iTunes Match.

Last year, Apple released its own streaming music service, iTunes Radio, which is built into the Music app of iOS 7. The service is radio-based, allowing users to discover new music through stations based on specific artists and songs, much like Pandora. It is unclear whether Amazon's service would mirror Apple's, or if it will more closely resemble services like Spotify, which allow users to search for and play specific songs.

Like Amazon, Apple was originally aiming to pay lower prices than the industry standard at six cents per 100 songs streamed, or half of Pandora's royalty rate, but the company was unable to reach deals with music labels at such low rates. Apple ended up agreeing to pay labels 0.13 cents for each song played, along with 15 percent of net advertising revenue, and it is likely that Amazon may have to make similar pricing concessions to bring a music service to fruition.

Article Link: Amazon May Add Streaming Music to Prime Service
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Old Feb 27, 2014, 05:21 PM   #2
Michael Scrip
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This almost guarantees that a Prime membership will increase in price.

They pay for 2-day shipping... and they also pay for all that video content.

Now they're gonna pay for music licencing too?

I'm hoping there will be a "Classic Prime" for just shipping.
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Old Feb 27, 2014, 05:22 PM   #3
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Amazon's video collection is much to small to even compare to Netflix. I hope they don't go half way on music, the way they did with shows/movies. I like prime shipping, wouldn't mind paying the same without all these things bundled together.
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Old Feb 27, 2014, 05:26 PM   #4
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Originally Posted by Michael Scrip View Post
This almost guarantees that a Prime membership will increase in price.

They pay for 2-day shipping... and they also pay for all that video content.

Now they're gonna pay for music licencing too?

I'm hoping there will be a "Classic Prime" for just shipping.
Don't forget the millions they are spending on amazon studios content.
If they do increase my Prime membership then I will say bye bye to it.
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Old Feb 27, 2014, 05:27 PM   #5
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Don't forget the millions they are spending on amazon studios content.
If they do increase my Prime membership then I will say bye bye to it.
BYE BYE!! GO depend on Apple for everything!!
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Old Feb 27, 2014, 05:34 PM   #6
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sure, why not add it.
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Old Feb 27, 2014, 05:35 PM   #7
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Originally Posted by Xerotech View Post
Amazon's video collection is much to small to even compare to Netflix. I hope they don't go half way on music, the way they did with shows/movies. I like prime shipping, wouldn't mind paying the same without all these things bundled together.
then pay the same and don't use all those things bundled together
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Old Feb 27, 2014, 05:38 PM   #8
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Don't forget the millions they are spending on amazon studios content.
If they do increase my Prime membership then I will say bye bye to it.
This is the question I have for Amazon bulls who think Amazon can just flip a switch and be profitable. There was a survey a few weeks back that showed if Amazon increased prime membership $20-$40 a large percent of current prime customers would cancel.
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Old Feb 27, 2014, 05:40 PM   #9
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$40 is a big price increase for just music. That's more than any other service.

I use prime for 2-day shipping but I'd be quick to cancel if they charge me that much more.

I understand cost of business increases. So I can expect 5-10$ increases every 3-5 years.

But I also spent 7k last year on amazon.com alone from "sold by amazon". I bought everything new for my kitchen (toaster, Kurieg, grill, waffle maker, pots, pans, etc) including a new computer and few other gadgets. They def got their monies
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Old Feb 27, 2014, 05:41 PM   #10
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Originally Posted by bobenhaus View Post
BYE BYE!! GO depend on Apple for everything!!
depend on apple? you do know there are many other services right

GO away
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Old Feb 27, 2014, 05:41 PM   #11
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Originally Posted by Rogifan View Post
This is the question I have for Amazon bulls who think Amazon can just flip a switch and be profitable. There was a survey a few weeks back that showed if Amazon increased prime membership $20-$40 a large percent of current prime customers would cancel.
Once you price yourself low it's hard to raise your rates. You are known as the cheap place.
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Old Feb 27, 2014, 05:46 PM   #12
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Music is expensive, I just hope that Amazon can handle it and it doesn't bite into the Lending Library payout agreements they made with authors.

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BYE BYE!! GO depend on Apple for everything!!
I sure will. Buying your digital video content through Amazon is foolish. Especially if you're a Mac user whose only way to view them is through streaming or boot camp to use their Windows application that is so outdated now.

Sure, with iTunes video content, you're limited to the Apple TV as the only box you can use with it. But people forget that pretty much any computer that can even run iTunes to begin with can do that too. As well as iPads, iPhones, and iPods.
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Old Feb 27, 2014, 05:47 PM   #13
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Originally Posted by unplugme71 View Post
$40 is a big price increase for just music. That's more than any other service.

I use prime for 2-day shipping but I'd be quick to cancel if they charge me that much more.

I understand cost of business increases. So I can expect 5-10$ increases every 3-5 years.

But I also spent 7k last year on amazon.com alone from "sold by amazon". I bought everything new for my kitchen (toaster, Kurieg, grill, waffle maker, pots, pans, etc) including a new computer and few other gadgets. They def got their monies
I would argue that you also got yours. The prices for each of those items to ship would have put you far past the $79 you spend on prime. Do you really think you wouldn't get your money's worth in shipping savings at $119? I don't buy nearly as much as $7k in a year from amazon, but I'm thrilled with the shipping services. Anything that I'm not actively supporting a local business for, I double check the price with Amazon, knowing that I'll have it in two days for free.
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Old Feb 27, 2014, 05:49 PM   #14
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I have been a prime member since inception. I have prime for SHIPPING, everything else is just a bonus that I really don't use. I still pay for netflix streaming and I still buy music from both amazon and iTunes. I don't really stream. This price increase will do nothing for me but increase the price. I will see no value added and I will cancel. It's really that simple.
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Old Feb 27, 2014, 05:51 PM   #15
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Well, until they add free Apple devices, I'm not joining it...
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Old Feb 27, 2014, 05:52 PM   #16
Michael Scrip
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Originally Posted by unplugme71 View Post

$40 is a big price increase for just music. That's more than any other service.
That would be an additional $40 per year... or $3.34 a month. That would actually make it one of the cheapest music services.

But Amazon is gonna really have to convince us why we should pay more.

I'd be curious to know the total number of Prime subscribers... and out of those how many regularly watch Prime Instant Video. I can't imagine a music streaming service being used that much either.

$120 a year isn't that bad though... I order enough stuff from Amazon throughout the year so the 2-day shipping is still a pretty good deal.

But I'm sure somebody is gonna attempt to figure out where our subscription fee goes. If it breaks down to $60 for the free shipping... $40 for the video service... and $20 for the music service... why can't I just pay the $60 for the shipping?
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Old Feb 27, 2014, 05:57 PM   #17
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If they do add this and raise prices, I hope they add tiered pricing. I don't want to pay $120 if all I use is the shipping and the rare Prime movie.
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Old Feb 27, 2014, 05:59 PM   #18
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Hell no! I don't want music streaming. I love Amazon Prime but I would be pissed if I was forced to pay $40 more to get an extra service that I have absolutely no interest in. As long as I can keep paying the $79.99 without the music, I will be happy. I don't like music streaming and shouldn't be forced to pay for it.
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Old Feb 27, 2014, 06:08 PM   #19
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Amazon has already artificially raised the value of Prime by raising the free shipping hurdle to $35. Including a service I don't want and then raising the price of Prime reduces its value to me.
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Old Feb 27, 2014, 06:11 PM   #20
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I'd get rid of Spotify if they did this and it included mobile access.
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Old Feb 27, 2014, 06:13 PM   #21
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I wouldn't worry about Amazon raising their rates. If they do I doubt it will be as high as $40. I'm thinking they're probably just trying to see how the public responds. They offer Prime to mothers and students for a 50% discount ($39 vs $79).

Prime shipping came along at a time where most other companies were charging for shipping no matter what. Now a lot of companies offer free shipping, and Amazon knows it has to up it's ante. It upped it's ante with video, but of course they have to compete with Netflix, Walmart (Vudu), Best Buy (CinemaNow) and now Target (Ticket), as well as a slew of others. So they upped it again with Lending Library, but they have to keep doing more.

Amazon is doing what many other companies seem to be afraid of doing: investing in themselves for the future. Amazon lost a lot of money in 2012, and their profit was tiny compared to their revenue in 2013. Yet people continue to invest in them, and their stock continues to rise; because they know that, long term, it will pay off. Look at everything Amazon has been doing in terms of services they offer through their retail site (Matchbook), as well as others (many may not know that Amazon has been a major player in the cloud computing scene, and helped get it to where it is today). If they can get Prime Air up and running that will revolutionize the entire retail industry.

But they have to keep their customers. A lot of companies know the dangers of Amazon, which is why so many are doing what they can to compete (a number of stores now price match with them). Amazon can't compete with the convenience of brick and mortar stores, so if those stores can match Amazon's offerings Amazon will lose. They have to keep upping the ante and staying ahead of the curve.

Last edited by Bayshun; Feb 27, 2014 at 06:15 PM. Reason: Clarification
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Old Feb 27, 2014, 06:15 PM   #22
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Quote:
Originally Posted by Michael Scrip View Post
This almost guarantees that a Prime membership will increase in price.

They pay for 2-day shipping... and they also pay for all that video content.

Now they're gonna pay for music licencing too?

I'm hoping there will be a "Classic Prime" for just shipping.
If you read the news from earlier in the month, Amazon is discussing increasing the prime membership cost $20 - $40. With shipping cost going up and increased cost for audio and video content, I think it will be $40.

I also like how the article equates the free prime video with Netflix. Amazon instant video is a good alternative to Netflix but, the free prime membership video is very poor when you look at the amount and quality compared with Netflix (i.e. Amazon video is good but you will most likely end up paying for the programs you really want to see even though you are a prime member).

Last edited by Plutonius; Feb 27, 2014 at 06:23 PM.
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Old Feb 27, 2014, 06:17 PM   #23
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Amazon has already artificially raised the value of Prime by raising the free shipping hurdle to $35. Including a service I don't want and then raising the price of Prime reduces its value to me.
Source, please.

I've bought MANY items priced less than $35 in the Prime program.
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Old Feb 27, 2014, 06:21 PM   #24
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Source, please.

I've bought MANY items priced less than $35 in the Prime program.
You are reading his post wrong. Without Prime, you need to spend at least $35 to qualify for free standard posting.

He is indicating that it makes Prime more worthwhile.
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Old Feb 27, 2014, 06:21 PM   #25
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Source, please.

I've bought MANY items priced less than $35 in the Prime program.
He means non prime. Before you needed to buy $25 worth of stuff if you didn't have prime for free 3-5 day shipping, now it's $35.
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