Netease Technologies News April 14, according to foreign media reports, sources said that Amazon has begun to discuss the launch of a free music service supported by advertising, which will threaten Spotify, the worlds leading streaming media.
Sources say Amazon will promote free music services through its smart speaker Echo, but it will offer limited music catalogues. The service may be available as early as next week.
In order to license free music, Amazon has said that no matter how many advertisements Amazon sells in the service, it would initially be willing to pay the relevant record companies for each music work.
Amazon declined to comment on the news.
The move highlights Amazons growing power in the music market. As an e-commerce giant, Amazon is willing to offer free music services or lose money on music services in exchange for support for its core retail business. This is a luxury Spotify cant afford. The biggest pressure facing the listed company, which focuses on providing streaming music services, is shareholders demanding that it be profitable.
So far, Amazon has launched its limited version of PrimeMusic as a way to boost its Prime membership service. Amazon Music Unlimited also offers an unlimited version of PrimeMusic, which charges $9.99 a month, but drops to $7.99 a month for members of Prime and $3.99 a month for users who only listen to music using Echo smart speakers.
Spotify currently has 96 million paid subscribers and 116 million free subscribers. Its free service is attractive and allows listeners to listen to specific albums or artistsworks on demand, but free subscribers cant control the playback order of songs.
Apple Music, by contrast, has 56 million paying subscribers and does not offer free music services. Apples Beats1 music radio service is free, but it does not offer music on demand.
Amazon did not disclose the number of music subscribers it paid for, but last year some reports estimated that Amazon had more than 20 million music subscribers and predicted that Amazons online music service would grow steadily by integrating with its market-leading smart speakers. (Tianmen Mountain)
Source: Responsible Editor of Netease Science and Technology Report: Wang Fengzhi_NT2541