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April 29, 2011 12:28 pm GMT

Behind The Scenes: Record Label Demands From Amazon

Amazon defied the record labels by launching an unlicensed personal cloud music service. (Disclosure: I'm CEO of competitor MP3tunes.) Music companies immediately expressed their dissatisfaction and Amazon public stated they would discuss licenses with labels. Since then considerable speculation has swirled about regarding licensing discussions Amazon, Google and Apple are having with the 4 major record labels. Dominating the discussions is the labels concern that personal cloud services will exacerbate piracy and erode their business even further. Consequently they want to impose substantial restrictions on any such service, but each labels has different concerns and demands. Below are examples of the startling limitations major labels wish to impose on such services. Universal Music Group is concerned that users will load pirated songs into lockers. Average MP3 players house more than a thousand songs and UMG believes that many were unpaid for. They do not want to see the billions of songs that came from P2P system laundered (think drug money) in a cloud service and become legitimate.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/XrnjqvgRJ4s/

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