Tuesday, August 07, 2007

Amie Street Closes Series A Financing Led By Amazon.com

Social music marketplace Amie Street has closed a Series A round of financing led by Amazon.com, along with some new partnerships and a site redesign. The amount of Amazon’s investment and the terms are not disclosed.

Amie Street

Overview:

AmieStreet is a music download service, where any artist can upload their music for download. Users then go to the site and purchase songs, with the starting price set at free. When downloads pick up, the price starts to rise, all the way up to $0.98. If a song gets to $0.30 or so, you know it’s popular. Artists keep 70% of revenues as long as they have made at least $10. Additionally, artists are not required to sell their music exclusively through Amie Street and can remove it at any time.

On the user end, users can search, browse and listen to music for free (via streaming). Users who have purchased a song can recommend it to their friends using a limited number of RECs that they’ve received (users get one per dollar they add to their account). Once recommended, users will get account credit if the price of the song increases, giving them an incentive to find and recommend good music.

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