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Amazon Is Working On A Spotify Killer

Ryan BusheyFeb 28, 2014, 20:11 IST

Mike Nudelman/Business Insider

Re/code's Peter Kafka reports that Amazon execs are engaged in talks with record labels for a possible music streaming service similar to Spotify for Prime subscribers.

To use Amazon Prime, subscribers pay $79 a year to get free two-day shipping and access to a library streaming of movies and TV shows on Amazon Instant, a service similar to Netflix.

This potential music service could be positioned as a way for Amazon to attract new customers since awareness is low.

Netflix costs $7.99 per month, but only streams TV shows and movies. If Amazon adds streaming music, it would be able to package streaming video, music, and two-day shipping together.

However, Kafka mentions that this deal is in the very early stages since Amazon is asking for substantial discounts on licensing similar to the ones offered to Spotify and Beats.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.