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Amazon Is Working With Record Labels On Subscription-Based Music Service [Rumor]

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Despite earlier attempts to bring streaming music to the masses, Spotify really nailed the concept when it launched in 2008. Now its the service every company in the business of selling music is trying to copy, including Amazon.

The Verge reports that Amazon is currently in talks with record labels on setting up its own subscription-based music service. If successful, Amazon could prove a formidable rival to incumbents like Spotify as it really has an established business in selling physical and digital music.

Of course, it probably will be a while before we see anything from this. Those privy to the meetings say that Amazon and the record labels are now just beginning to talk, and that said talks are “very informal” at this point in time.

Amazon is just the latest company said to be in talks with record labels about setting up a subscription music service. Analysts have predicted that Apple will get into the streaming Internet radio business this year to take on services like Pandora. Google is also reportedly getting into the streaming music scene with YouTube.

Out of all the rumored players, Amazon seems the most well suited for the music streaming business. It already has an established cloud infrastructure with Amazon Cloud Player. There’s also the rumored existence of a Kindle phone and $99 Kindle Fire HD; both of which could provide the perfect platform to launch a streaming service on.

As always, the above is nothing but a rumor for now. That being said, it’s completely within the realm of possibility so don’t be surprised if Amazon announces something similar to Spotify this year.