News - 29/01/2016

Amazon may be planning a full on-demand music streaming service

Amazon may be planning a full on-demand music streaming service

Online retail giant Amazon is planning to launch a fully-fledged music streaming service in the near future, the New York Post reports. 

The NYP claims that the company has been discussing the terms of comprehensive licensing deals that would enable it to offer a catalogue comparable to that of Apple Music and Spotify. 

Amazon Prime Music is currently free to Amazon Prime subscribers but offers a limited catalogue, whilst the new offering would warrant an additional monthly fee. 

Seeing the service launch with a $9.99 monthly price point would quite frankly be incredibly boring. Amazon is used to disrupting markets and it is likely they’d find a way to lower that price, either by bundling the service with a device like the Echo speaker or by offering a discount to existing Prime members. 

The key issue with Amazon’s plan is that since the release of Prime Music the company has been stressing how it is not really necessary to have all the latest hits to offer a good music experience to its users. 

Now, in order to get the millions of existing Prime subscribers to buy into the new service, Amazon would have to turn around and make the argument that users couldn't possibly live without the full service, which seems somewhat contradictory. 

Another option would be for Amazon to offer a two-tier Prime subscription, one that would include the full streaming offering and one that wouldn’t. If the price is right that could be a clever way to encourage users to either save some money by jumping ship from Spotify or Apple Music or to try out the experience of a full on-demand music service for the first time. 

 

(Andrea Leonelli) 

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