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NewsPoster Mar 12, 2014 07:42 AM
Rumors shed more light on Amazon set-top box, Prime music service
More rumors for fabled Amazon services have surfaced, with three different outlets claiming to provide more information about the <a href="" rel='nofollow'>Prime music service</a> and its long-rumored <a href="" rel='nofollow'>streaming device</a>. The latest claim for the music service, thought to be offered as part of the Prime delivery subscription, sees the company limiting the number of plays of a track, as a means to increase its MP3 sales. <br />
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The <em>Wall Street Journal's</em> <a href=" o64-wsj& 10001424052702304020104579433483787979164.html" rel='nofollow' target="_self" title="">sources</a> believe the service, which will apparently raise the Prime cost from $79 to as high as $119 per year, would prevent a track or album from being listened to once it reached either a set number of plays or for a limited amount of time. By shutting down access to a song, this in theory would push the subscriber to buy the <a href=" rage/" rel='nofollow'>track itself</a>, a likely prospect if they have listened to it enough times to get it blocked. <br />
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<div align='center'><img class='mobile-img' src='' width='320' height='480' alt='Amazon Cloud Player' border='0' pagespeed_url_hash="1030203068"/><br/><span class='minor2'>Amazon Cloud Player</span></div><br />
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As to how record labels will be compensated for this, <em>Billboard</em> <a href="" rel='nofollow'>claims</a> Amazon is offering a "take-it-or-leave-it" pool of funds for song licensing, paid in a pro-rata basis. The total pool of a claimed $30 million per year is divided into a $25 million pot for the major labels and a $5 million version for independents, something said to be described by insiders as "derisory." A record label executive is said to have queried why Amazon will pull in $20 to $40 extra per Prime subscriber, yet will give independent labels a fixed $5 million pot, claiming it to be "insane." Another major-label executive is apparently worried that the service could potentially take revenues from other streaming services, but a third executive claims Amazon is willing to negotiate a higher payment pot. <br />
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Amazon's set-top box, which has been previously described as an <a href=" ublishers/" rel='nofollow'>Android-based game console</a>, is said <a href="" rel='nofollow'>by</a> <em>GigaOM</em> to ship with Netflix and Hulu Plus onboard, as well as Amazon's own Instant Video and Prime Instant Video. It will also apparently ship with a remote control, and also offer support for the DIAL multiscreen protocol, allowing mobile apps to launch videos from the device in a similar way to Google Chromecast. The launch date remains unknown.
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