So Much For Amazon Trying To Play Nice With Labels

Posted by Zach Shaw on Wed, Apr 13, 2011 at 5:07 pm

Digital Media

At the beginning of April, it was reported that Amazon was attempting to play nice with labels after they went launched their Cloud Player and Cloud Drive without licensing agreements. However, Amazon made sure to shoot down any talks about licensing via a letter. Digital Music News reports that Amazon sent the following letter (which the site got from various recipients) to labels:

“Our launch of Cloud Drive and Cloud Player last week garnered lots of attention and excitement. We thought we’d follow up with you to let you know that customer response has been terrific. Customers have embraced Cloud Drive by uploading photos, documents, music and other digital files and thanking us for providing an easy way for them to keep their files safe.

And, as we expected, by removing the friction associated with managing your personal music files, our launch of Cloud Player has boosted Amazon MP3 sales.

There has been a lot of discussion as to whether Cloud Drive and Cloud Player require licenses from content owners.  Here’s why they do not:

(1) Cloud Drive is a general online storage service for all digital files, not unlike Google Docs, Microsoft SkyDrive and any number of other internet file backup services.  It’s your external hard-drive in the cloud.  It requires a license from content owners no more than those other internet file back-up services do and no more than makers of external hard drives for PCs do.

(2) Cloud Player is a media management and playback application not unlike Windows Media Player and any number of other media management applications that let customers manage and play their music.  It requires a license from content owners no more than those applications do.

It’s really that simple.

There has also been speculation that we are looking for licenses for Cloud Drive and Cloud Player. We are not looking for licenses for Cloud Drive or Cloud Player as they exist today — as no licensees are required. There are, however, potential enhancements to Cloud Drive and Cloud Player that would require licenses and that we are interested in — like the ability to replace multiple copies of the same music track uploaded by different customers with a single server copy that could be used for all customers with the same track.  Licenses permitting us to do that would save storage costs and would be good for customers because they would reduce the number of tracks customers need to upload to Cloud Drive themselves.

Expect to hear more from us on potential licensing in the near future – and please let us know if you have any questions in the meantime.

The Amazon Music Team”

This letter admits that they may be interested in negotiating in regards with licenses for certain enhancements, such as consolidating redundant song uploads with a single copy to save space. But Amazon’s message to labels is pretty clear: “Fuck off, we don’t need your help!” A pretty bold statement, especially considering that reviews about the Amazon Cloud have been mixed.

We’ve unfortunately haven’t gotten the chance to try out the Amazon Cloud service ourselves. However, Ken from the blog PiercingMetal.com has tested it out and gave a step by step review of the Amazon Cloud. If you’ve tried it out as well, let us know what you think.

 

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  • Dan

    Amazon is 100% right. I know the music biz is trying to explore every area they can, and they should, but they’ve got no recourse here. This is a storage service for content that users have already paid for, the music industry can’t expect to get paid twice.

    Technically speaking, one central file for all users might be an “enhancement” with a licensing fee, but there is legal president for even that with cable providers and a “centralized” DVR system – I’m too lazy to look it up, but my point stands: the user paid $X for an album. That is your money. You can not ask money for every time they want to listen to it just because they want to store it in a different location.

  • Dan

    Furthermore, it’s not a matter of “playing nice” or not with the labels. They already are playing nice. They are in business with them, and doing good business with Amazon MP3. “Playing nice” by doing an unnecessary licensing agreement for cloud storage would essentially be charity here, as there is no revenue to share. And it sets a bad president.

    Amazon isn’t directly making money from Cloud Drive/Player, there IS nothing for the labels to take a cut of. It is, however, a very savvy way to entice customers to buy from Amazon and not iTunes: every song you buy is automatically backed up, and does not count against your storage quota. And for now, if you buy Amazon, you get bonus storage. It’s a reason to try Amazon and realize it’s a better shopping experience, and often cheaper than Apple. It’s brilliant, and it’s beating iTunes to the punch in a big, big way.

    And if the labels want to soften Apple’s power over them by being such a monolith, well here’s an opportunity.

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