While lots of music services are still trying to figure out how to make money by distributing copyrighted music you’ve heard of, SoundCloud is taking a different tack. As I wrote last fall:

It’s designed to let professional and amateur musicians share their own music with each other and the public, via cloud-based files that the company hosts.

Once the tunes are on SoundCloud’s servers, the service makes it easy to move the stuff around the Web, via its own widget and an API that’s showing up on lots of interesting sites, apps, services and devices, including Facebook and Apple’s iPad. You can load SoundCloud files into Spotify, the streaming music company that Index has also invested in.

The service uses the freemium model, offering most of its capabilities for free, and charging up to $700 a year for more storage and extra features.

You can also use SoundCloud for less enlightened purposes, like sharing music you don’t own. But the company has recently implemented an audible “fingerprinting” service, like the ones Google’s YouTube uses, which allows copyright owners to take down files they don’t want on the Web. And that should give the company legal cover, unless the YouTube/Viacom case takes a very different turn.

In a blog post announcing the funding, SoundCloud says it will use the money to scale faster and “be more present in the US.” It also posts short clips, using its service, from its new investors–Index’s Mike Volpi and Union Square’s Fred Wilson.

Here’s Wilson:
Thoughts on SoundCloud by fredwilson. Uploaded with SoundCloud Android

And Volpi:
Mike Volpi Audio Blog on Friday morning by mvolpi. Uploaded with SoundCloud iPhone

And if you’d like something more entertaining, here’s a very long mix of classic hip-hop, via Cut Chemist:

Cut Chemist – Hip Hop Lives (1985-1996) by Cut Chemist

Think of it as the equivalent of iTunes for Android.

Developers will be able to upload apps–including games and other digital content–to Amazon, which in turn will promote and distribute them on Amazon.com and also on mobile phones. (I can hear the promotions now: “If you liked that app…what about this one?”)

In a blog post aimed at developers, Amazon writes that it’s trying hard to get developers recognized among the hundreds of thousands of apps out there: “Amazon’s innovative marketing and merchandising features are designed to help customers find and discover relevant products from our vast selection, and we’re excited to apply those capabilities to the apps market segment.”

For the past few months, Amazon employees have been reaching out to developers to find out pain points and drum up support for this day.

So far, it looks like Amazon has listened to concerns. The developer portal looks insanely easy to use–anyone with a regular Amazon username and password can access it. Right now, the annual fee of $99 has been waived, and once you agree to a seven-page app-store distribution agreement, you can start uploading applications to the network, and eventually see metrics on how well they are performing.

Much of it sounds like iTunes.

Amazon will share 70 percent of revenues with developers, and the distribution agreement hints it will go worldwide. For now, it will be limited to the U.S. Amazon will handle all the bill processing, which is complex, especially on a global basis. Google learned this the hard way, and continues to support only paid apps in some countries. Amazon will also have some sort of approval process, but it’s unclear how rigorous that will be.

Launching an app store is not a stretch for Amazon. It’s been selling MP3s on phones for some time and has a large digital catalog, spanning books and videos. It also has a built-in payment system and access to tens of millions of Amazon customers, many of whom have their credit card information on file, as with iTunes or PayPal.

The one question is whether the business will provide enough scale for an e-commerce company of its size. After all, most applications today are free, or really cheap. And at least for now, Amazon is limited to the Android operating system.

True, Android is quickly gaining on Apple, especially in the U.S. According to Nielsen’s latest figures, the iPhone’s market share is 28.6 percent vs. RIM’s BlackBerry and Google’s Android platforms, which are essentially tied in second place with 26.1 percent and 25.8 percent, respectively.

There are two potential scenarios that will help pencil this out: The app store could help drive more sales of other content or products on the phone for Amazon. A more farfetched scenario is that Amazon does such a good job that other platforms or handset makers, like BlackBerry, Windows Phone, HTC or Samsung, will choose to outsource or adopt Amazon’s platform for a cut of the revenues.

The online and mobile gaming sector has been a hotbed of deal activity over the the last year, from the sale of Playdom for $750 million and Tapulous to Disney, to the acquisition of Playfish by Electronic Arts for $400 million, to the multitude of small developers being bought up by Zynga.

Most recently, Ngmoco was sold to Japan’s DeNA for $400 million.

So what’s the next to go? Several sources said that U.K.-based Chillingo, arguably the hottest of the downloadable game publishers–mostly via apps for the Apple iPhone and iPad–is close to a sale to a bigger company.

The likely acquirer: EA.

The price estimates for Chillingo range from $80 million to close to $200 million.

[UPDATED] EA confirmed the deal to me, noting:

I can confirm EA’s purchase of Chillingo for an undisclosed price.

By acquiring Chillingo, EA Mobile is increasing its market leadership on the Apple Platform as well as reaffirming its position as the world’s leading wireless entertainment publisher.

This acquisition will combine Chillingo’s expertise in cultivating the ideas of independent developers with EA’s global mobile publishing reach.

Chillingo remains committed to its promise of providing the optimal gaming experience for consumers and diligently listening to all its audiences in order to enhance the titles we bring to market.

A source close to the situation said the price was under $20 million in cash, but there were other elements, most likely incentives and earnouts.

[Back to the original post] There are a number of other companies that could be interested in Chillingo, such as Intel, Gameloft, Activision Blizzard, DeNA and even Microsoft’s gaming unit.

But sources said EA is the one targeting Chillingo, which says of itself that it “works with a global network of independent development studios and leverages its network of marketing channels and publishing strength to promote and distribute games.”

Among Chillingo’s biggest hit titles is Angry Birds, which was published by its Clickgamer division and developed by Finland’s Rovio.

Chillingo was one of the first to publish on the iPhone platform and is planning upcoming glames to be released on Google’s Android mobile operating system.

More recently, it released Cut the Rope, which was developed by Russia’s ZeptoLab. It sold one million copies in less than 10 days and is the No. 1 paid app in the App Store.

And Chillingo recently announced a half-dozen new games for the Apple App Store.

The company also has Crystal, an open social gaming platform for the casual gaming community.

BoomTown has calls into Chillingo and EA for comment.

Online games phenom Zynga and Japanese Internet and telecom giant SoftBank announced a joint venture to develop and distribute social games across Japan.

The new Tokyo-based service will be called Zynga Japan and is Zynga’s first foray into that country.

The companies also said SoftBank had completed a $150 million investment in Zynga, which had been previously reported.

It’s Zynga’s second major move into Asia. In May, the start-up acquired China-based social gaming developer XPD Media.

The San Francisco-based Zynga, of course, has been on a tear of late too, striking deals with Yahoo and Google, as it seeks to expand its distribution from Facebook, the social networking platform where it first took off.

Zynga also recently signed a five-year agreement with Facebook.

SoftBank made other digital news yesterday when it announced that it would switch Yahoo Japan’s algorithmic and paid search from Yahoo (YHOO) to Google (GOOG).

Here’s the official press release:

ZYNGA AND SOFTBANK CORP. LAUNCH JOINT VENTURE TO ACCELERATE SOCIAL GAME INDUSTRY IN ASIA

SOFTBANK INVESTS $150 MILLION IN ZYNGA

SAN FRANCISCO and TOKYO–July 29, 2010–Zynga and Softbank today announced a joint venture that will develop and distribute social games across Japan. The new joint venture, Zynga Japan, brings together leaders in social games and consumer technology to offer millions of new users the ability to play social games anytime and anywhere. In conjunction with today’s announcement, Softbank has completed a $150 million investment in Zynga. With this agreement, Zynga and Softbank will tighten their relationship as business partners.

The joint venture extends Zynga’s reach to a wider global audience and marks the company’s first foray into the rapidly growing internet and mobile market in Japan. Based in Tokyo, Zynga Japan will tap into Japan’s rich history of gaming and leverage Softbank’s cutting edge mobile and Web technology to produce the best social games in the market.

“Zynga is a leader in social games and I am delighted to partner with them to introduce their social games to Japan,” said Masayoshi Son, chairman and CEO of Softbank. “We share the same vision as Zynga in social games and look forward to working together to create a social game powerhouse.”

“We’re excited to partner with Softbank to bring Zynga’s social games to Japan and gain insights from the Japanese market,” said Mark Pincus, CEO and Founder of Zynga. “As one of the most innovative technology companies in the world, Softbank is bringing the mobile internet to consumers making the social web more accessible to people everywhere.”