Apple, Google, and other companies have entered the streaming music market to compete with Spotify and other big names. Talks around Amazon Prime have been a price increase for the same service, but now there is talk that Amazon has been talking to record labels for streaming music service wrapped together in Prime. This would justify the price increase that Amazon said is due to increase of shipping prices.
Despite the talks between the labels and Amazon, the companies are allegedly in disagreement over costs associated with the service. Amazon has been requesting lower prices than others, such as Spotify or Rdio. However, it does appear that Amazon wants to offer this with its Prime services. Amazon has the resources and user base to offer this to current subscribers, but with all the other competitors it will be hard to draw users over.
The music service has a flaw still because most users still use phones to access their music, and Amazon lacks a Kindle phone currently. This could be a sign that Amazon is working on the rumored Amazon Kindle phones so users will have a portal of content on their free phones. We could also see a Amazon set top box in the coming months. As the company positions it as a content portal and sells almost everything , we could see Amazon begin to take over the market.