AmieStreet Closure May Show Where Amazon Thinks Music Ownership Is Headed
Amazon was an early investor in AmieStreet, Inc. which until today owned AmieStreet.com and still controls Songza.com. 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 AmieStreet.com "doesn't change their ownership level of Amie Street, Inc. and therefore of Songza.com," 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.