Amazon to take on Apple Music and Spotify with its own streaming music service

Amazon to take on Apple Music and Spotify with its own streaming music service
According to a report published on Friday, Amazon is about to challenge music streamers Spotify and Apple Music with a service that will be priced competitively, and offer a similarly diverse music catalog for users to choose from. Apple Music gives new subscribers a one time three-month free trial. After that, the service costs $9.99 a month for individuals ($4.99 a month for students) and $14.99 for a family with up to six members.

Spotify also charges $9.99 a month for its premium service. But roughly 70% of its subscribers use the ad supported free tier, which is a level of service that Apple does not offer. Spotify, at last count, has over 100 million free and paying subscribers which makes it the top music streamer globally. David Pakman, a partner at Venture Capital firm Venrock, says that he would expect a streaming music service from Amazon to take customers away from Apple, but not Spotify.

Speculation about Amazon's new streaming music service calls for it to charge $9.99 a month. Currently, members of its Prime shipping and video service are entitled to listen to a free music streaming service called Prime Music, which has a limited catalog of one million tunes. Apple and Spotify's music libraries are estimated to contain 30 million songs each. Current Prime Music members are able to listen to streaming music via the Amazon Music with Prime Music app available in the App Store.

Amazon's new music streaming service is expected to launch in late summer or early fall, with the company presently in negotiations with record labels.

source: Reuters

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19 Comments

1. phonehome

Posts: 812; Member since: Dec 19, 2014

If I want music from Amazon, I will order CDs or other physical media. Just like people want their smartphones from Apple or Samsung.

7. vincelongman

Posts: 5692; Member since: Feb 10, 2013

People are buying less and less CDs/physical media Amazon is adapting Blockbuster didn't adapt, look where it lead them Plus this would be a great deal for consumers if it was bundled into Amazon Prime, which I believe also includes Amazon Video (Netflix competitor)

10. meanestgenius

Posts: 22043; Member since: May 28, 2014

Yep, Amazon Prime does include Amazon Video.

3. DechyX

Posts: 156; Member since: May 16, 2011

Hopefully it'll still stay bundled with Primw

6. meanestgenius

Posts: 22043; Member since: May 28, 2014

Amazon is a giant with a vast ecosystem. They can definitely pull off a competitive streaming music service. I'm an Amazon Prime member, so I hope that there is some sort of bundle for Prime members. Would love to see Amazon step their game up big time (in regards to smartphones) and compete once again in the smartphone space.

8. mrochester

Posts: 997; Member since: Aug 17, 2014

What's Amazon gonna do that Apple and Spotify don't already do?

9. meanestgenius

Posts: 22043; Member since: May 28, 2014

For one thing, if they bundle it with Prime, it will be a bonus for Prime members and give Amazon an automatic streaming service "user base" in the tens of millions. Amazon is also an expert in digital services, music being one of them.

13. mrochester

Posts: 997; Member since: Aug 17, 2014

What's being an expert in digital services going to allow them to do that Apple Music and Spotify don't already do?

14. zunaidahmed

Posts: 1183; Member since: Dec 24, 2011

nothing, just more of a choice, people who already have subscribed to prime would not have to pay extra for streaming both music and video, thats probably it.

15. meanestgenius

Posts: 22043; Member since: May 28, 2014

It won't effect Spotify so much, because they do offer a service for free. But Apple doesn't. Amazon has more experience in this field than Apple, and can potentially offer more than Apple can via their vast network.

18. mrochester

Posts: 997; Member since: Aug 17, 2014

What more are Amazon going to be able to offer? I'm after some actual examples of this enhanced features and services that you imagine Amazon are able to offer that Apple and Spotify can't.

19. meanestgenius

Posts: 22043; Member since: May 28, 2014

Didn't I just name a few? Anyway, As I already said, it won't have any real impact on Spotify since they offer a free tier to their service. But it will affect Apple if Amazon bundles this with Prime. They'll have an instant user base in the tens of millions, they'll have video service as well (if bundled with Prime. Something neither Apple or Spotify bundles with their music service). Amazon can potentially stream more content to more users at any given time via their vast AWS network. These things can and will help them steal users of Apple Music, since they will be offering more choice and services.

23. mrochester

Posts: 997; Member since: Aug 17, 2014

No I want to know what more in the *music streaming service* that you envisage Amazon will be able to offer over Spotify and Apple Music. We aren't talking about Amazon Prime or any other streaming business.

24. meanestgenius

Posts: 22043; Member since: May 28, 2014

Dude, I'm done explaining this to you. I gave you my reasoning. Take it or leave it. I really don't care.

21. tedkord

Posts: 17356; Member since: Jun 17, 2009

He just told you, if it's bundled with Prime, it'll stream TV, movies as well as music.

22. meanestgenius

Posts: 22043; Member since: May 28, 2014

Thanks, Ted. I thought I was typing some unknown foreign language for a minute.

11. zeppo

Posts: 200; Member since: Jul 21, 2015

If it bundles with prime, it will be the greatest deal. As a prime member, I love free shipping + prime video (better than Netflix IMO), but I never use prime music lol.

12. Ezio2710

Posts: 548; Member since: Aug 22, 2015

Anyone missing fire phone

16. meanestgenius

Posts: 22043; Member since: May 28, 2014

I own one. It's not a bad phone (battery life sucks, though). Amazon's services, of which I am heavily invested in, work better on Amazon hardware.

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