ONLINE RETAILER Amazon could face opposition from the music labels over its decision to launch a data locker service.
Yesterday Amazon revealed its Cloud Drive service that offers users 5GB of storage with the ability to play music files through its Android application or web browsers. Now it seems that the music labels are up to their usual tricks by asking Amazon to sign new licensing terms.
Sony Music spokeswoman Liz Young said, "We hope that they'll reach a new license deal, but we're keeping all of our legal options open." Ah that old stinger, threatening 'legal options' against a firm that is offering a service that tries to make buying music, instead of downloading it illegally, more attractive.
One of Reuters' sources said that some in the music industry might even try to label Amazon's Cloud Drive as illegal, which should concern both Amazon and its competitors.
Music companies generally don't like people being able to play music on multiple devices. It's an argument that harks back to the days of the cassette player and more recently to digital restrictions management in digitally purchased music.
Amazon's rivals such as Apple and Google will be watching this impending battle between the retailer and the music labels before they decide to launch similar services. It's obvious that Apple and Google are well placed to offer cloud based music streaming, but perhaps they have held off due to contract negotiations with greedy music companies.
It seems that the music industry is determined to put the kibosh on any attempt to help it. Amazon will now have try to work out a deal to keep its prices competitive without imposing usage restrictions that consumers have learned to shun. µ
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