Amazon Says Cloud Drive Has Improved Digital Sales

The company's letter to record labels insists that Cloud Drive doesn't require licenses for music

April 12, 2011 4:10 PM ET
Amazon Says Cloud Drive Has Improved Digital Sales

In a letter to music labels, Amazon is claiming that its Cloud Drive digital locker service has caused a spike in its Amazon mp3 sales. The letter does not back up this claim with hard data, but it does shoot down speculation that the company is looking to secure music licenses for its Cloud Drive and Cloud Player products. Amazon insists that there is no need for licenses because its cloud storage service is not unlike an external hard drive or similar services such as Google Docs and Microsoft SkyDrive.

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Amazon's letter does say that the company anticipates adding features to its Cloud Player that will require licensing, but they did not specify any particular plans or offer a timetable for a rollout of enhancements to the service.

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