At the rate they’re going, Amazon’s gonna run out of markets to corner.
Amazon seems keen on developing new services lately. Aside from rumors of a new gaming service, a new report from Billboard also claims that Amazon might be developing a free, ad-supported music service, similar to how Spotify is operating its free version right now. In fact, the report is suggesting that perhaps Amazon is gearing the new service to be a direct competitor to Spotify, who is currently leading the music streaming market.
The new music-streaming service will be marketed through Amazon’s smart speaker, the Echo. The free tier will apparently have a limited music catalog, along with ads to keep the service free. Participating labels are given a corresponding payment depending on the number of streams that their music receives. This payment rate is not tied to the amount of advertising that Amazon sells, however.
In an interview with The Verge last year, Amazon said that music is a huge part of the company’s business. Amazon Music, for instance, has millions of active subscribers. The service depends on the subscriber’s location. Prime members in the US can freely access a select music catalog, and they can also avail a larger monthly subscription that costs $3.99 to $9.99 a month. Other countries offer cheaper service that comes in bundles.
Details about Amazon’s new service are still scarce, and there are no updates yet whether the service will be more like a radio or an on-demand service. Despite that, Billboard says that Amazon might drop the new service sooner rather than later.
