Amazon.com Inc yesterday introduced a full-fledged music streaming service with subscriptions as low as US$3.99 per month for owners of its Amazon Echo speaker, accelerating the industry trend toward more flexible pricing after years of sticking to US$9.99 subscriptions.
The new streaming service, called “Amazon Music Unlimited,” lets users access a vast catalog of songs on demand, similar to Spotify and Apple Music.
Subscriptions to play music on the Echo cost US$3.99 per month; for access beyond that device, subscriptions cost US$7.99 a month for members of Amazon’s Prime shipping and video service, and US$9.99 for non-members. Amazon will continue to offer Prime members a limited streaming service for free.
Photo: Amazon Music/AP
As it plunges deeper into the crowded streaming field, Amazon is counting on the Echo, a smart speaker that responds to voice commands, to set it apart.
Released broadly last year, the Echo has become a surprise hit, prompting many to predict that voice will become a key way users interact with technology — and music is central to the device’s appeal.
Amazon believes such smart home devices will be a key source of growth for the music industry, Amazon Music vice president Steve Boom said.
“The first phase of growth [in music streaming] was driven almost entirely by smartphones,” he said in an interview.
“We believe pretty strongly that the next phase of growth in streaming is going to come from the home,” he said.
The low price for Amazon’s streaming service is consistent with the firm’s reputation for undercutting the competition and signals the music industry is beginning to accommodate consumers who are unwilling to pay US$9.99 per month.
Boom said he was optimistic that the new prices would expand the market.
“We’re moving music away from a one-size-fits-all approach,” Boom said. “We are the ones who have been pushing this the hardest.”
The premium music service, following the release of a standalone video service, suggests Amazon will increasingly offer basic media options through Prime while selling additional subscriptions for consumers who want to go deeper, Jackdaw Research analyst Jan Dawson said.
Amazon is also hopeful that artificial intelligence will keep users tuned in. Recommendations based on listening habits have become a staple of streaming services, and Amazon has also woven artificial intelligence into the system so users can request songs that fit a particular mood or search with lyrics.
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