Report: Amazon Prime music streaming service due in June/July

|By:, SA News Editor

Amazon (AMZN) is set to launch a music streaming service for Prime subs that provides access to songs that are at least 6 months old, BuzzFeed reports.

Re/code reported in February Amazon is holding talks with studios about a music service, albeit while adding studios were balking at the company's demand for a major discount. Keeping new songs out of the library appears to be the compromise.

The report comes 24 hours after Apple announced it's buying Beats and its subscription streaming service, which currently has ~250K subs. Spotify, reportedly eying an IPO, dominates the market with 10M+ paid subs.

Amazon is only 2 months removed from hiking Prime's price by $20 to $99. Since then, the company has struck a Prime Instant Video streaming deal with HBO that will reportedly cost it $300M+ over 3 years.

Macquarie reported in January Amazon's Prime sub base has topped 20M.