Amazon now enters the music business as it introduces new streaming music service.

Online shopping giant Amazon said that it is preparing to launch a streaming music service which is expected to be out this week. The report has not cited any names in terms of sources, but said that the service would have a more limited catalogue than some of the rivals. Also, the new feature will be offered for free and without the need for advertising for Amazon Prime customers.

 streaming music service

The subscription service will include free delivery and access to online movies and other advantages.

More reports say that Sony and Warner have agreed to the terms with Amazon, but no deal has been reached with any other major music publisher such as the Universal Music Group. The report has also suggested that some of the newer hit songs might be excluded from the Amazon service.

It has been rumored for several months that Amazon has been working on a music service, but the talks were delayed over the royalties and licensing fees.

Amazon is said to be offering small labels shares of around $5 million royalty pool, while bigger labels and distributors are being offered a larger one-time payment for access to certain titles.

For the customers of Amazon Prime, the music can be an added bonus. Earlier in 2014, the annual fees increase from $79 to $99.

On the other hand Amazon might also be preparing to launch its own smartphone which could be tied up with the Kindle tablets.

Photo Credits: MSN