Amazon to challenge iPOD, iTunes

Amazon.com has been reported to be getting ready with their own digital music player, which will be linked to its online music service, and the company is in negotiations with several music companies for content.

Unlike Apple's iTunes service, where each song is sold at a price of 99 cents, Amazon will offer a service that charges a monthly or annual fee to customers, who will have the right to fill up their music players with as many songs as they like, the executives said. When they stop paying the fee, the music on the player will be disabled.

Sources suggested Amazon could pick Samsung, the South Korean technology group, as a partner. The players could be sold cheaply or with a year-long subscription to the service. Users would have access to unlimited music as long as they maintained their subscription.

The Wall Street Journal reported on Thursday that Amazon executives are in "advanced" talks with four record label giants. The paper said the Seattle-based company is exploring the possibility of launching its own Amazon portable digital music player and subscription service offering discounted rates.

"We never comment on rumors and speculation," said Amazon spokeswoman Patty Smith. Apple did not respond to requests for a comment.

Amazon has been steadily building its digital download capabilities in recent months. Over the past year, the Seattle-based company has hired 3,000 employees, including many software engineers who are readying digital content downloads. An Amazon spokesperson declined to comment, citing a policy of not commenting on rumors or speculation.

There are other alternatives to iTunes available on the web, including Rhapsody, Napster and Yahoo. But music acquired through a subscription service, or downloaded from an outlet other than iTunes, cannot be played on the hugely-popular iPod. Apple's iTunes, on the other hand, is close to selling one billion music downloads.