Report: Amazon eying music service, could be free for Prime subs

|By:, SA News Editor

Re/code reports Amazon (AMZN) is "engaged in more serious talks with big music labels" about launching a music streaming service that might be bundled with Prime.

However, one source adds a deal isn't close to be finished, since studios are balking at Amazon's request for a major price discount relative to existing services.

Amazon, no stranger to the realm of online music, has already said it's mulling a $20-$40/year U.S. Prime subscription hike, a move that could make it easier to subsidize a music service. Moreover, the e-commerce giant recently hiked Prime fees for U.K./German subs, while simultaneously bundling Lovefilm's video streaming service.

The launch of an ad-free Amazon music service that's bundled with Prime would have big implications for market leader Spotify (possibly prepping for an IPO), and could also affect streaming radio leader Pandora (P).