UPDATED 17:35 EDT / OCTOBER 12 2016

NEWS

Amazon takes on Spotify with new music streaming service

On-demand music streaming services such as Spotify and Pandora have become some of the more popular ways in which people consume music today. Now, Amazon has thrown its hat into the ring with its new Amazon Music Unlimited service.

Similar to Kindle Unlimited, Amazon Music Unlimited is a subscription service that allows users to listen to massive music library of tens of millions of songs. By comparison, Amazon says that its existing Prime Music service offers a catalogue of roughly 2 million songs.

Like Kindle Unlimited, Amazon Music Unlimited is not free to Prime users. The company is offering the service to Prime members at a modest discount of either $7.99 per month or $79 for the whole year (about $6.58 per month), compared to the non-Prime price of $9.99 per month.

There is also a cheaper option for Amazon Echo owners, as Amazon is offering an Echo-only subscription for just $3.99 per month, which is valid for one Echo, Echo Dot or Amazon Tap device. Echo users can activate a free trial for Amazon Music Unlimited simply by saying “Alexa, start my Music Unlimited free trial.”

Amazon said that it plans on offering a special “For Family” subscription plan later this year, which will allow up to six family members to use the same Amazon Music Unlimited account at a rate of $14.99 per month or $149 per year. Amazon Music Unlimited is currently available in the US only, but Amazon says that it will be rolling the service out to the UK, Germany and Austria later this year.

Still, the new service could compete heavily with Pandora, Spotify and other services. “While Amazon Music Unlimited’s impact on the current music landscape is unknown, given Amazon Prime’s massive scale, it’s reasonable to assume it could take share,” John Blackledge, an analyst with Cowen & Co., said in a note today to clients.

In addition to the new streaming service, Amazon has also revamped its music app, which places a heavier emphasis on music discovery and playback. This includes a “Recommended” tab that suggests new music, as well as a “Now Playing” tab that shows music lyrics that are synchronized to the current song.

According to Amazon, millions of users already stream music through Amazon Music, and the company claims that it is one of the most popular music streaming services in the world. The data seems to back up this claim, as a study by Cowen found that around a third of households who subscribe to Amazon Prime listen to Prime Music, which  Cowen says puts Amazon just behind terrestrial radio, YouTube and the free version of Pandora in terms of total listeners.

Photo by chick in heels 

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