Report: Amazon plans to take on iTunes, iPod

WIll sell its own brand of music player, subscription service

By Dan Nystedt

February 16, 2006 12:00 PM ET

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IDG News Service - Amazon.com Inc. plans to launch its own Internet music service to rival Apple Computer Inc.'s iTunes Music Store, The Wall Street Journal reported today, citing unidentified sources.
The world's largest online retailer also plans to sell its own branded portable music players and a subscription service that would offer deep discounts and preloaded songs to users of its music players.
Amazon could not immediately be reached for comment.
The company is in advanced talks with four global music companies about a digital music service that could be launched as early as this summer, according to the report. With its history of selling CDs online and its huge customer base, Amazon could pose a formidable threat to Apple's domination of the online music business.
Amazon still needs to sign licensing agreements with the four music companies: EMI Group PLC, Sony BMG, Vivendi Universal SA's Universal Music Group and Warner Music Group Corp., the report said.
The report said Amazon may tap South Korea's Samsung Electronics Co. Ltd. to build its digital music player.
Amazon has discussed offering the portable music players free as part of a long term subscription package, or selling them with preloaded music that could be swapped out for other songs during the course of the subscription, according to the report.

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