Amazon Inc. is reportedly plunging headfirst into a direct competition with established music services such as Spotify and Apple Music.
The largest internet-based retail company is allegedly planning to launch its very own music streaming service in late summer or early fall, according to Reuters. The new music service is expected to cost $9.99 monthly — the same price of a subscription to Spotify or Apple Music.
Better Late Than Never
Although the company already offers on-demand streaming through Prime Music, this service only contains a partial catalog of more than a million songs. In comparison, Apple Music and Spotify both boast a catalog of more than 30 million.
Furthermore, Prime Music costs $10.99 per month — unless users commit to a $99-subscription for a year — with extra benefits such as free two-day shipping on Amazon products and streaming video.
Amazon's comprehensive music service will become a late competitor to the already growing streaming space, but the company believes the service is crucial to its goal of becoming a reliable source of goods and content, one of the Reuters sources said.
"A music service will further increase the daily interactions between Amazon and its customer base," Jay Samit, former CEO of SeaChange International, told Reuters.
Expanding Amazon Echo's Reach
Amazon has yet to release a statement about the full-fledged music service plan, but sources say the company intends to boost the appeal of Amazon Echo.
Apparently, this home speaker, which is capable of searching the internet and ordering products with voice commands, has been a major hit among users. Rival Google has been seeking to emulate the device with a speaker of its own, the Google Home.
Echo supports a diverse range of music services, including Pandora, TuneIn, Spotify and Prime Music, but the full-scale, closely integrated music streaming service could expand its reach further.
The music service will also widen Amazon's subscription offerings, paving the way for a single, yearly subscription. For instance, the company recently allowed its Prime subscribers to pay every month.
Hopes For The Future
Apple Music's launch in 2015 marked a significant shift in consumers' tastes, indicating that listeners now prefer subscription services rather than buying individual songs or albums.
Similarly, Alphabet Inc.'s Google has muscled into streaming in previous years with the goal of weaving itself more tightly in the daily lives of customers.
Amazon wants to do the same. The company hopes its integration of the new music streaming with Echo will help the service stand out and enforce the speaker's dominance, sources said.
