Billboard has a letter Amazon sent to some rights holders in the music industry which sheds light on just what the company's cloud player is doing behind the scenes -- it's not using a single copy of each song file to serve to all the people who upload the same song, for example. But it sure would like to.
"Cloud Player is a media management and play-back application not unlike Windows Media Player and any number of other media management applications that let customers manage and play their music. It requires a license from content owners no more than those applications do. It really is that simple."
But the note also points out that Amazon foresees adding "potential enhancements to Cloud Drive and Cloud Player that would require licenses, including serving different customers with a single copy and save on the efforts by customers to upload music to the Cloud Drive." The letter ends with, "expect to hear more from us on potential licensing in the near future."
via Billboard, April 11, 2011 (via GeekWire)