In a bold move that will influence Apple and Google, Amazon unveiled a cloud music service almost daring the record labels to protest. Their service competes directly with MP3tunes, but that's not the big news. Waiting on the sideline is Apple and Google watching how the labels will respond. If the labels do nothing, Apple and Google will see a clear path to their own services without entering a license.
Labels have consistently pressured net companies to enter licenses before launching cloud music. When MP3tunes launched without a license, EMI sued us. Amazon's launch raises the stakes because of their size.
If Amazon can launch an unlicensed service without repercussions, what motivation would there be for Google or Apple to enter into a license? Any such license would have substantial economic payments and usage restrictions, putting Apple and Google at a disadvantage to Amazon.
--MR
