Amazon is reportedly a month away from launching a new subscription-based music streaming service. Once licensing agreements are signed, Amazon will enter a crowded market dominated by Spotify and Apple Music.
The online retail giant Amazon is close to signing licensing deals with some of the world's preeminent record labels, a final step in its bid to claim a chunk of the digital music market, according to a report in the Financial Times.
The newspaper cited two people familiar with the matter, who said Amazon could launch its streaming service as soon as September, though the company has yet to officially confirm a launch date.
Another player looking to enter the music streaming fray was Pandora, until now a provider of internet radio. That company was similarly close to inking agreements with the holders of music rights and could introduce its service by the end of the year, Financial Times noted.
A subscription to both companies' new streaming platforms would cost $9.99 a month, according to the Financial Times. Other industry players, including Spotify, Apple, SoundCloud, Deezer, Tidal and Google Play, all offer similar services for that price.
According to the report, Amazon would pay the same level of royalty fees as Apple, which pays a bit more than Spotify. Spotify, which counts more monthly subscribers than any other music streaming service, diverts about 70 percent of its revenue to copyright owners.
cjc/uhe (Financial Times, dpa)