Plenty of speculation over Amazon’s plans regarding this investment and how it may pertain to Amazon’s plans to enter the digital music sales market.

Amazon invests in social music site Amie Street – Ars Technica

Small online music retailer Amie Street announced today that it has received a round of Series A financing led by a somewhat unexpected source: Amazon. The companies declined to disclose the amount of the investment, which included several private investors, but the move could hint at what customers can expect to see from Amazon’s own music store when it launches later this year.

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Amazon could also be interested in bringing Amie Street under the Amazon umbrella. Offering Amie Street as a cobranded or entirely Amazon-branded venture would give the site much more exposure and save Amazon from having to develop its own solution from the ground up.

AmieStreet’s Music Community Funded by Amazon – Mashable

The unique approach of a combined digital music store largely influenced by its own social network is probably very appealing to the executives at Amazon, considering the somewhat passive approach it has to the inclusion of user-submitted content.

Music at Market Prices – Springwise
Here’s how the site currently works:

Prices at Amiestreet are determined by demand, increasing to a maximum of USD 0.98 per song depending on how many people download it. The more popular a song, the faster its price will increase to 98 cents. Besides giving early buyers a better deal, the market price system gives consumers the added pleasure of seeing they’ve discovered a song or artist before everyone else has.

Amie Street Closes Series A Financing Led By Amazon.com – TechCrunch

No doubt, Amazon’s recent payments system seems an ideal fit for the site as well.

Amazon Invests in Music Site AmieStreet – Digital Media Wire

Will Amazon’s Music Service Embrace Variable Pricing? – Hypebot

We can’t imagine that labels – major or indie – are anywhere near being ready to adopt such a radical pricing plan or that current recording contracts would allow it.

An a partner in a new indie label I have to say Amie St. has been one of the few music services I have been interested in. Not only do they provide an easy means of selling your music online, the start price of zero provides incentive for people to take a chance on you and should the price rise I see that as a marketing tool in that someone obviously likes you.

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