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Amazon recently initiated discussions with major music labels in an effort to kickstart a streaming service for its paying Prime members, one report says, possibly signaling the entry of yet another service into the crowded Internet radio space.
Citing sources within the music industry, re/code reports Amazon has stepped up negotiations with major labels in what appears to be a legitimate play at the music streaming market.
Amazon may be a long way from launching such a service, however, as at least one person familiar with the talks says the Internet retail giant is nowhere near a definitive deal.
As with other Amazon ventures, the company is said to be seeking low fees on merchandise, in this case songs, that represents a substantial discount when compared to pricing offered to competing services.
According to the publication, Amazon will likely mete out the music content to Prime members in much the same way as it handles videos. Currently, the company offers certain free movies to customers who pay the $79-per year Prime membership fee, which is mainly used for free two-day shipping and other perks.
If Amazon does enter the streaming music fray, it will contend with other well-developed subscription services like Spotify and Beats Music. Apple, too, is in the mix with iTunes Radio, a free-to-use service that removes ads with an iTunes Match subscription.
Unlike the usual players, however, Amazon's rumored service would be a value-added feature to Prime, not a standalone product. It is unclear how the model would play out considering the number of Prime members who are unaware of the current free video cache supplied as part of their subscription.