11 April 2019
Amazon is reportedly working on launching a new free but ad-supported music streaming service to take on the competition. The report is coming from Billboard citing sources familiar with the matter. It mentions that Amazon is currently having discussions to bring the service to a reality and is quite close to making that happen.
This upcoming service is primarily said to compete with Spotify's free-tier subscription. Among all the major global music streaming services, Spotify is the only that offers a free plan. Amazon is hoping to attract those free subscription users as there is always a possibility that they might eventually turn into paying subscribers.
To lure record labels to provide as much music for free as possible, Amazon is offering to pay a fixed amount of money per stream regardless of the revenue it is able to generate via ads. It means even if Amazon is unable to generate profit, record labels will still be earning good money.
It is said that Amazon is looking to market this free yet ad-supported music service via Echo smart speakers. It has been noticed that music is one of the most common things for which Echo devices are used. People tend to stream music or ask queries related to music quite a lot. This is where Amazon is thinking of offering the new service as a ready-to-play service. It means there is no need for registering and getting a new membership. Simply set up the Echo device and start streaming.
Amazon is yet to comment anything on the report but an official announcement is expected to happen as soon as within a week. We will have to wait and see for that.