Is Amazon now planning streaming service too?

By | Published on Wednesday 20 March 2013


With both Apple and Google busy developing streaming music services behind their big closed doors, why not start speculating that Amazon is also building a “Spotify killer”? Oh look, people are. Yes, rumours are now circulating that Amazon is also considering launching a streaming platform to sit alongside its MP3 store and digital locker service.

And the etailer possibly has some advantages, not least a business model that often involves taking a hit on some services to build market share. Unlike download stores where digital operators generally only pay rights owners when tracks are sold, with streaming services the digital firm usually operates at a loss at the start (and in many cases for quite a few years after that), and generally neither Apple nor Google like taking too much financial risk when it comes to content services.

Amazon, though, routinely makes a loss on certain content products to drive up traffic and customer numbers. The etail giant could also integrate any streaming music service – at launch or down the line – with its existing video-on-demand platforms, so LoveFilm in Europe and Amazon Instant in the US, and there is an argument that ultimately stand-alone streaming music services are not sustainable, and said services will need to ally with online TV and film set ups.

So, Amazon-ify, it could happen.