Amazon's Music-Streaming Service Might Not Be A Spotify Killer After All
That's because it might limit the amount of time users can listen to songs. Spotify dropped time limits for everyone, even free users, back in January.
Amazon is hoping that once the listening time expires, listeners will then want to download songs and albums from the company's MP3 store, people familiar with the matter tell the WSJ.
The WSJ reports:
Amazon has told record companies it would pay them out of a fixed pool of money, according to people familiar with the matter, instead of compensating them based on how often users listen to their songs. Music companies are seeking to withhold their newest music from the service, a person familiar with the matter said, though details were unclear as the negotiations are in process. The retailer has told some music companies that it plans to impose time limits on how long a user can listen to a given song or album on the service.
If that's the case, it's more akin to iTunes Radio than it is to Spotify. iTunes Radio offers music based on user input, much like Pandora, but it features prominent buttons for people to buy music they like.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.