Labels somehow believe that after legally purchasing songs you shouldn't be allowed to stream them from one computer to another; even though they are only being played on one device at a time.
According to Reuters, music labels were informed of Amazon's plans last week.
Only later did Amazon address the issue of negotiating licenses, one source close to the discussions said. That executive called the move "somewhat stunning" and noted that some within the media industry said the service might be illegal.
"I've never seen a company of their size make an announcement, launch a service and simultaneously say they're trying to get licenses," said the executive.
"The labels have engaged in a legal terror campaign over the last 10 years using litigation to try and slow technology progress," MP3tunes founder Michael Robertson said of the music industry's latest reaction to Amazon's plans.
Apple and Google are said to still be struggling to get licensing for their cloud lockers. Perhaps they should follows Amazon's lead.