Apple Plans Cloud-Based Music Service

Apple is planning a cloud-based music locker service that will enable its customers to stream music to multiple devices. The Wall Street Journal reports that what makes the Apple proposal different from Amazon’s recent Cloud Drive rollout is that Apple is seeking paid licenses from the labels for its service (Amazon started its service without gaining such approval).

Although the Apple version has yet to go public, insiders report that it will work differently than the Amazon Cloud Drive and Player, which acts much like an external hard drive. Through deals with the labels, the Apple service will allow for a single master copy of a song to be stored on its servers, that can then be shared with multiple users (the Amazon service requires users to upload each song they want to access remotely).

“The idea is that Apple will let users store songs they’ve purchased from its iTunes store, as well as others songs stored on their hard drives, and listen to them on multiple devices,” reports WSJ.

Recent rumors suggest Apple will charge users an annual subscription fee, possibly in the area of $20.

Related Wall Street Journal article: “Amazon’s Cloud Music Move Isn’t Earth-Shaking” (3/29/11)

Related Wall Street Journal article: “Amazon’s Cloud Service Is A) Legal B) Illegal? C) Probably Here To Stay” (3/29/11)

Related Los Angeles Times article: “Price war! Amazon launches 69-cent MP3 store for top-selling tunes” (4/28/11)

Related TechCrunch article: “Behind the Scenes: Record Label Demands from Amazon” (4/29/11)

Related CNET article: “Expect Apple to charge for music cloud” (4/26/11)

Amazon Launches its New Ad-Supported Kindle

Amazon announced that its new ad-supported Kindle will launch April 27, nearly a week earlier than originally expected. The e-reader — dubbed Kindle with Special Offers — will ship for $114 through Amazon, Target and Best Buy (that’s $25 less than the Wi-Fi only version).

According to Amazon, the cost reduction is a result of the device being subsidized by advertising. Early sponsors include General Motors, Proctor & Gamble and Visa. “Special offers” will be made available directly to the new Kindle related to Amazon.com gift cards, audible books and products from the various Amazon stores.

The latest Kindle is 21 percent smaller and 17 percent lighter than its predecessor, but features the same 6-inch reading area. The company claims the device features the “most advanced E Ink Pearl display technology” and touts 50 percent improved screen contrast with crisper, darker fonts.

It’s worth noting that the ad-supported model is getting more press than the Kindle’s new specs. We’ve seen similar approaches with other devices and services in the past, with mixed results. It will be interesting to see how consumers respond.