Rumor: Apple, Amazon "Working on a Deal" for Music Store


Far from sitting on its laurels with its successful iTunes Music Store (iTMS) launch, Apple is reportedly in talks with Amazon to develop an joint internet music initiative, according to the New York Post.

Although the Post does not cite official sources, the paper does quote Amazon.com CEO Jeff Bezos saying "We've been looking at it for years."

Neither Apple nor Amazon would comment on the rumors to the Post. However, the story reports that the Amazon-Apple talks may result in some type of distribution deal.

Analysis: As the Post notes, there could be considerable benefits in a deal for both players. Here's a thought: iTunes 'products' could include iPods, Macs and other hardware and software, including special deals. iTunes could simply be a browser window into both the Apple/iTMS and Amazon.com stores. For example, 'buy an iPod from Amazon, get x number of songs from iTMS'. For its part, Apple can push iTMS users over to Amazon books and music. With a Windows version of iTMS coming, the potential is enormous.