AmieStreet Closure May Show Where Amazon Thinks Music Ownership Is Headed

image from Amazon was an early investor in AmieStreet, Inc. which until today owned and still controls That it was decided to shut down AimeStreet, abandon its dynamic pricing model and concentrate on Songza, may say more about the internet giant's music strategy than it does about AmieStreet's business model.

In fact, Amazon's purchase of "doesn't change their ownership level of Amie Street, Inc. and therefore of," according to AmieStreet Inc.spokesperson Joshua Boltuch. So was AmieStreet a bad idea or did the music industry change directions before it gained traction? "To the extent people are buying music a la carte, variable pricing is a great way to price digital music because it empowers listeners while maximizing sales for artists," replied Boultuch when asked if dynamic pricing of music had a future.

Why concentrate on Songza? 

Because as Boutuch implied, "the extent people are buying music a la carte" is not growing rapidly enough and Songza, at its core, is a social music streaming application. Many believe this is where the music industry is headed and so it's where Apple, Google, Sony and now it appears Amazon are placing their new bets.

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  1. I think you need to clarify your story. Amazon bought the traffic and domain They did not buy Songza. Hence Amazon is not buying (in this transaction) into social music streaming. AmieStreet was an awesome service and a great team, but this story misrepresents the purchase by Amazon as an investment in streaming which it most definitely is not.

  2. As the article states Apple was and remains an investor and adviser in the parent company that continues to own Songza. It is doubtful that a decision was made to shut and refocus efforts with out a key investor’s (Amazon’s) support.

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