Online retailer Amazon’s new service, Cloud Drive, has frustrated the music industry as such services can depreciate their revenues further.

Amazon’s cloud-based music service is offering 5GB of storage capacity to allow users to upload and store content like music on the company’s servers. The 5GB storage capacity is enough for storing more than one thousand tracks.

Cloud Player lets users to access the stored tracks from multiple devices such as smartphones, computers and other Internet-connected devices.

Addition capacity can also be purchased. The Seattle-based company is offering 20GB of storage for $20 (£12.50). However, for a limited time period, Amazon is offering 20GB of storage for free to users who buy a digital album from the Amazon MP3 store.

But, analysts are of the view that Amazon could face licensing issues due to the newly announced cloud-based service. But, Amazon said they did not need a license to store music as the functionality was the same as an external hard drive.

Apple and Google are also rumored to be working on similar services, but none of the two have confirmed their cloud-based music services.