Boston, MA 06/04/2014 (wallstreetpr) – Amazon.com, Inc. (NASDAQ:AMZN) is increasingly becoming a serious thorn in the flesh of iPhone maker Apple Inc (NASDAQ:AAPL). While the e-commerce operator originally took aim at Apple Inc with the cheaper tablet known as Kindle Fire, Amazon has taken its battle against Apple Inc a notch higher.
In just a matter of days after Apple Inc announced a deal to acquire Beat Music for $3 billion, a move that could support the iPhone maker’s penetration in the lucrative streaming music business, Amazon has made a deft move that could spoil the party for Apple Inc and many other players in the streaming business.
Sources with insider knowledge reveal that Amazon.com, Inc. (NASDAQ:AMZN) is planning to launch a rival music streaming service that will be ad-free and free of charge for customers with Amazon Prime account. Amazon’s free music streaming service could launch this month or the next one. The more than 20 million Prime members who pay $99 per year to enjoy a wide range of services from Amazon will have added advantage of streaming music at no extra cost. However, Amazon’s music streaming service will treat customers to music or albums that are six months or older.
Streaming music business
Last year Apple Inc launched iTunes Radio in efforts to enter the lucrative music streaming business. The move was also seen as an attempt by the company to support its iTunes Music Store where sales have been sliding. However, Apple Inc has had to contend with the growing challenge from industry leader Pandora Media Inc (NYSE:P). Now with the entry of Amazon.com, Inc. (NASDAQ:AMZN) in the music streaming business, the picture must be complicated for Apple Inc because its $3 billion acquisition may be hard to justify.
Hitting Apple Inc where it hurts
In the move to enter streaming music business, Amazon.com, Inc. (NASDAQ:AMZN) has just hit Apple Inc where it hurts most, again. Its Kindle Fire tablet is already a serious headache for Apple that is struggling to grow sales in the hardware market where price war is the order of the day. Apple Inc is already taking a beating from Android devices and its efforts to diversify into streaming business are getting thwarted by an old rival called Amazon.
