The major of onlines’sales Amazon outstrips Apple and Google launching a new offer of streaming service in the USA: Amazon Cloud Player.
This service is composed of Cloud Drive, where you can stock your files, and Cloud Player, where you can read them. Files can be music, pictures or videos.
You can have a free access of 5Go space (1, 000 music titles, 2, 000 pictures or 20 minutes videos) or 20Go if you buy an album on Amazon. Then you can enlarge your space in paying a yearly rate.
Amazon has made available its offer on Android mobile phones but not on iPhones in order to be a competitor to iTunes.
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How could Google and Apple react?
Google and Apple were intended to launch the same kind of offer. Google wanted to launch it last Christmas but it is still engaged in talks with the Majors to determine the service revenue.
Apple is working on adding a tool to the big iTunes system via lala.com which has been bought at the end of 2009 buy Apple. Now lala.com is no more in use but it would be the new Amazon Cloud of iTunes.
Well done for Amazon which created a tougher competition in the US versus Apple when Spotify is still not in this market.
What are the Majors thinking of it?
Amazon hasn’t negotiated licenses with the Majors which could be considerate as illegal… I think the Majors are scared of consequences because launching a streaming service without agreements from the Majors means those have less revenue from licensing and the streaming service could affect even more music album’s sales (already affected). These could be the two main reasons.
That also means that Amazon is such a big powerful company, it has no need dealing with the Majors and it is all the more a big competitor. And this strategy has pushed it in the lime light before Apple and Google.
Thanks for drawing this one to our attention - it's building on Cloud technology to make something really useful. And you'll presumably be able to listen to all your favourite music no matter where in the world you are. I'd be interested in learning more about the financial aspects of this -how much has Amazon invested and what impact do they think it will make on their business?
ReplyDeleteI found some information about Amazon's investment and how investors reacted.
ReplyDeleteAccording to Reuters, Amazon wanted to sacrifice its profitability to win customers in investing in Cloud computing and built new businesses but investors reacted and January 27 its shares fell 9 percent. However Amazon expect $9.51 billion in sales, which would be 33.4 percent higher than last year.
I think in the short-term Amazon would have to face difficulties such as investors' power of decision but efforts will pay in the long-term.
I am quite confident because Amazon is an evolutive and innovative company.