Amazon Working on Echo $5-a-Month Music Streaming Service

[MacRumors]

Amazon is working on a $5-a-month music subscription service that will be exclusive to owners of the company's internet-connected Echo speaker.

According to Recode, Amazon is planning to introduce the service in September alongside another music streaming service that costs $10 a month, to compete more directly with the likes of Apple Music and Spotify.

Industry sources say the company has yet to finalize deals with major music labels and publishers. One sticking point is reported to be whether Amazon sells the cheaper Echo-only service for $4 or $5 a month.

The $10-a-month service is said to replicate features common to the streaming market, such as unlimited, ad-free playback and an option to download music for offline listening. The company already offers Amazon Music as part of its Amazon Prime subscription package, but the music catalog is limited compared to streaming services like Tidal and Google Play Music.

The $5-a-month service would be different to discounted subscription models that other companies have tried in the past. Not only will the $5 service be restricted to Echo owners, it won't be available to use on smartphones, which is what most users of existing streaming services sign up for.

Amazon started shipping the Echo last year and reportedly sold a million units. The company is aiming to sell three million more this year and 10 million in 2017, according to The Information.

Article Link: Amazon Working on Echo $5-a-Month Music Streaming Service

 

[44267547]

Could be lucrative, but Amazon has their work cut out for them with Spotify and Apple Music already deep into this industry. I think it depends on the continued success of the Echo as well.

 

[Telos101]

They really need to open the Echo up to non-US markets. I'd definitely buy one and only then would I consider any streaming services.

 

[S.B.G]

Uh, no thanks Amazon. I love you very much, but not in your streaming music department.

With such a limited catalog I cannot see how this will be a successful venture for them. I tried to replicate a playlist of mine from Spotify to Amazon Music and found after 2 songs I already had to buy the other songs from Amazon because it wasn't in their Prime music service. Instead I turned to Google Play Music and their 4 month free trial offer and was able to replicate my Spotify playlists there without missing any songs.

 

[frankgrimes]

WTF is going on with Amazon? I used to be a huge fan of their service and still buy a lot of stuff there but this is getting ridiculous:

Some stuff is only for primemembers
Exclusive prime deals
Paying extra to become a "prime member" with services I'll use on other sites like Netflix
Introducing another fee for a voice assitant that can play music?

It's not so much about the money but more about the future if Amazon keeps this subscription crap up. The funny thing is, as someone who loves listenting to hardstyle like Korsakoff, Pavo and Qlimax I won't even find the music I'm looking for even if I'm paying for it.

There is no way Amazon can compete with Spotify

 

[OllyW]

Uh, no thanks Amazon. I love you very much, but not in your streaming music department.

With such a limited catalog I cannot see how this will be a successful venture for them. I tried to replicate a playlist of mine from Spotify to Amazon Music and found after 2 songs I already had to buy the other songs from Amazon because it wasn't in their Prime music service. Instead I turned to Google Play Music and their 4 month free trial offer and was able to replicate my Spotify playlists there without missing any songs.

I think the new service is going to have a full catalogue of music so it can compete with Apple Music and Spotify.

 

[Michael Scrip]

Not only will the $5 service be restricted to Echo owners, it won't be available to use on smartphones, which is what most users of existing streaming services sign up for.

It's cheaper than other services... but with severe usage limitations.

It doesn't sound like much of a deal.

 

[S.B.G]

I think the new service is going to have a full catalogue of music so it can compete with Apple Music and Spotify.

I certainly hope so for their sake, otherwise it will be a bust right out of the gate. I know, from a past article and this one, that they're trying to update their catalog but I can't help but wonder if its too late for them to be able to compete effectively in this area.

 

[frankgrimes]

I certainly hope so for their sake, otherwise it will be a bust right out of the gate. I know, from a past article and this one, that they're trying to update their catalog but I can't help but wonder if its too late for them to be able to compete effectively in this area.

Why even try it? What's wrong with focussing on the stuff they (used) to be good at, customer service and delivering on time? If I'm looking for a great video service it will always be Netflix, If I want to stream music it's Soundcloud or Spotify but for sure not Amazon.

What Amazon should try is adding a premium light option, which only includes free delivery in 2 days I would pay for that for sure but not for services I'll never use.

 

[S.B.G]

Why even try it?

I myself have no intention of trying it. I've moved on from Spotify to Google Play Music and couldn't be happier since I'm getting the same thing I had on Spotify plus YouTube Red and 4 months of it free.

I do agree with you though, Amazon probably should stick to what they're already doing very well and that is their Prime delivery service and fantastic customer service.

 

[frankgrimes]

I myself have no intention of trying it. I've moved on from Spotify to Google Play Music and couldn't be happier since I'm getting the same thing I had on Spotify plus YouTube Red and 4 months of it free.

I do agree with you though, Amazon probably should stick to what they're already doing very well and that is their Prime delivery service and fantastic customer service.

Agreed but their cs was much better before they started to outsource stuff from germany to poland, cz..

 

[CarpalMac]

I do agree with you though, Amazon probably should stick to what they're already doing very well and that is their Prime delivery service and fantastic customer service.

AWS is worth over $10bn a year now, so they can definitely deliver more than just shopping.

 

[SBlue1]

Why only on the Echo device? Why not on your smartphone?

 

[S.B.G]

Agreed but their cs was much better before they started to outsource stuff from germany to poland, cz..

I can't speak for their European CS, but being a customer since 1999 in the US, I have nothing bad to say about their CS and in fact they've had the best CS of any company, online or B&M, that I've ever dealt with. Of course, YMMV.

AWS is worth over $10bn a year now, so they can definitely deliver more than just shopping.

I agree, but will argue, why haven't they stepped up their game to the level of Apple, Google, Netflix or Spotify in this area?

 

[Chupa Chupa]

Could be lucrative, but Amazon has their work cut out for them with Spotify and Apple Music already deep into this industry. I think it depends on the continued success of the Echo as well.

But Amazon had music streaming before Apple. I wouldn't say Amazon is a "Johnny come lately" here. Amazon has more Prime subscribers than Apple has Music subscribers. Amazon also seems to be ahead of Apple in pushing voice control home automation. It often promotes "Alexa" compatible products. Echo appears to be selling well, and as a new comer to using Siri to control some of my lights (with Hue) it's really great and look forward to other products being able to be controlled by voice. I don't think that is a fad. Apple needs to put a wick on its Siri promotion and also make it smarter or its going to lose the home automation market, which could be the next big thing in the coming decade.

 

[BeyondtheTech]

Why only on the Echo device? Why not on your smartphone?

Not a big deal. After getting aggravated with poor FM reception in the car, I installed an Amazon Echo Dot using an aux cable and a micro-USB DC charger. Add my iPhone as a personal hotspot and I'm streaming unlimited crystal-clear audio with Pandora, iHeartRadio, and Amazon Music for free with T-Mobile's Music Freedom feature. Casual voice control of my in-car audio is just icing on the cake, and my iPhone is free to do other things (or nothing) without interrupting the audio.

I was about to get a Pandora One subscription, but I'd be happy to try this out for $5 a month.

 

[Rogifan]

So is Amazon going to subsidize this to get more Echo sales? I find it highly improbable that Amazon was able to negotiate a $5/mo deal but Applr and Spotify weren't. The devil is in the details.

 

[69Mustang]

So is Amazon going to subsidize this to get more Echo sales? I find it highly improbable that Amazon was able to negotiate a $5/mo deal but Applr and Spotify weren't. The devil is in the details.

It's for a very limited audience of Echo owners only. No smartphones - no mobile streaming. That's probably why they were able to get the $5.

 

[Kaibelf]

Coming soon, Amazon Milk.

 

[coolfactor]

Classic continuation of the nickel and diming model that businesses have gravitated towards. Small micro-payments month after month after month. Great for them, but taxing to users. So now there's a "tax" on the Echo device itself, rather than it simply streaming an existing, more universal music subscription.

People, say no to this. Don't buy it.

 

[Weaselboy]

Coming soon, Amazon Milk.

I have some news for you.

 

[npmacuser5]

Uh, no thanks Amazon. I love you very much, but not in your streaming music department.

With such a limited catalog I cannot see how this will be a successful venture for them. I tried to replicate a playlist of mine from Spotify to Amazon Music and found after 2 songs I already had to buy the other songs from Amazon because it wasn't in their Prime music service. Instead I turned to Google Play Music and their 4 month free trial offer and was able to replicate my Spotify playlists there without missing any songs.

Not to be picky, Amazon's new music offering will have a similar offering in number and variety of music choices as the big guys.

 

[S.B.G]

Not to be picky, Amazon's new music offering will have a similar offering in number and variety of music choices as the big guys.

Yeah, I acknowledged that earlier in the thread too. I sure hope they do otherwise they'll stand little chance of breaking into the streaming market with any significance.

 

[npmacuser5]

From my understanding, Amazon Echo uses a VPN connection to their servers for security, the little white light on the back of Echo. Foreign and US regulations get in the way thus, taking more time to negotiate. I have two Echo's and one Tap. For my needs, great music devices.

 

[frankgrimes]

Yeah, I acknowledged that earlier in the thread too. I sure hope they do otherwise they'll stand little chance of breaking into the streaming market with any significance.

Do they even have a foot in the door? I know they have Amazon Prime Videos or whatever they are calling it but this is basically subsidized by the whole "prime offer". I thought prime already included music streaming, so now people have to pay 5 bucks a month on top of the prime fee in order to listen to "Echo music"?

Man Amazon, for gods sake create a prime all in one and prime delivery only membership option please, or call it Amazon light if you don't want to lessen the value of prime...