Amazon wants to live the stream
|Amazon is reportedly in talks with major record labels to roll out its own free, ad-supported music streaming service. Until now, the ’Zon has offered its limited Prime Music service for Primers, plus standalone Amazon Music Unlimited subscriptions for $10/month.
According to Billboard, Amazon would start with a limited catalog and pay record labels on a per-stream basis, regardless of ad revenue. Amazon may also be able to make use of its label relationships from its CD-selling days (remember CDs, kids?).
Will Spotify soon be playing second fiddle?
With this entry into the market, Amazon is flexing its ability to be a loss leader in a highly competitive space: Spotify shares slid 4% in response to the news.
Sizing up the rest of the competition, big and small…
YouTube, which accounts for nearly half of global tunage consumption, has long rock-blocked paid streaming services, and Apple Music has strong numbers, but no free offerings. SoundCloud’s recent positioning change-up pulled its 175m users out of direct competition.
Rumor has it the new ad-supported service will be available through Echo speakers, possibly this month.