Amazon rushes to sign licensing deals with labels
After shrugging off Sony's anger, Amazon executes a sharp u-turn
Amazon is supposedly scurrying to secure licensing deals with the four major record labels in the US after announcing the Amazon Cloud Player recently.
The announcement of Amazon's Cloud Player last week ruffled more than a few feathers in the music industry as labels were left stunned having not yet come to any arrangement with the online retail giant.
Amazon's public unveiling may well have been rushed amid rumours of similar services on the horizon from both Google and Apple.
Unsurprisingly, Sony responded rather poorly to Amazon jumping the gun, calling the move "really disrespectful" and adding that it would be "keeping [its] legal options open."
Amazon's initial response appeared to be one of nonchalance, likening its service to iTunes - simply "an application that lets customers manage and play their own music" and therefore it would "not need a license to make Cloud Player available".
However, with further controversy sparked by the revelation that Cloud Player could stream a song to five devices simultaneously, Amazon appears to be eating its words and rushing to agree on terms with Sony and other labels.
Besides legal concerns, the deals would also increase the efficiency of the service for Amazon. It could then compare users' music libraries with a central database allowing the user access to their songs in the database, instead of actually copying every file.
With no news of deals being successfully reached as yet, it will be interesting to see how the legal drama unfolds.