Amazon (AMZN) Lets You Listen to Music from Clouds; Memory Could be Erased
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Amazon.com (Nasdaq: AMZN) officially launched its Amazon Cloud Drive, Amazon Cloud Player for Web, and Amazon Cloud Player for Android Tuesday, pushing shares up 1.1% on the news.
Not everyone is convinced that Amazon is introducing a paradigm shift in the way consumers access and store media. AllThingsDigital, for instance, reports that Amazon's service is not compatible with Apple's (Nasdaq: AAPL) iPad, iPhone, or iPod, and that it won't allow you to search and listen to music that you don't already own.
Amazon makes the cloud more enticing, allowing for 5GB of free storage right out of the box.
ATD also notes that the service doesn't care where the music came from: Amazon, iTunes, piracy, it stores them all.
Amazon has potential to expand the service by cutting deals with sites such as Spotify, Grooveshark, Pandora, etc., though Apple is probably less likely to want to dilute the power of its iTunes service.
On the news, makers of memory, such as Seagate (NYSE: STX), Western Digital (NYSE: WDC), SanDisk (Nasdaq: SNDK), Hitachi (NYSE: HIT), and Toshiba, are looking a little weak today.
With the consumer having the ability to simply stream favorites to their mobile device, sales of memory chips could sink (though there will surely be a set that want to store music separate from the cloud service). The potential erasure of billions in revenues for the memory makers is imminent, although the effects may not be felt for a few years as the consumer adopts to using the cloud service.
Not everyone is convinced that Amazon is introducing a paradigm shift in the way consumers access and store media. AllThingsDigital, for instance, reports that Amazon's service is not compatible with Apple's (Nasdaq: AAPL) iPad, iPhone, or iPod, and that it won't allow you to search and listen to music that you don't already own.
Amazon makes the cloud more enticing, allowing for 5GB of free storage right out of the box.
ATD also notes that the service doesn't care where the music came from: Amazon, iTunes, piracy, it stores them all.
Amazon has potential to expand the service by cutting deals with sites such as Spotify, Grooveshark, Pandora, etc., though Apple is probably less likely to want to dilute the power of its iTunes service.
On the news, makers of memory, such as Seagate (NYSE: STX), Western Digital (NYSE: WDC), SanDisk (Nasdaq: SNDK), Hitachi (NYSE: HIT), and Toshiba, are looking a little weak today.
With the consumer having the ability to simply stream favorites to their mobile device, sales of memory chips could sink (though there will surely be a set that want to store music separate from the cloud service). The potential erasure of billions in revenues for the memory makers is imminent, although the effects may not be felt for a few years as the consumer adopts to using the cloud service.
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