Amazon is Planning a Spotify-Killer Streaming Music Service

According to a Reuters report, retail giant Amazon.com, Inc. (NASDAQ:AMZN) will soon launch a $10 per month all-you-can-listen streaming music service to compete with similar services like Spotify, Apple Music, and Tidal.

From the report:

The service will be offered at $9.99 per month, in line with major rivals, and it will offer a competitive catalog of songs, the sources said. Amazon is finalizing licenses with labels for the service, which likely will be launched in late summer or early fall, the sources said.

Amazon, which offers a free streaming music service with a limited catalog to subscribers of its Prime shipping and video service, did not respond to a request for comment about the new, full-fledged music plan.

Although it will be a late entrant to the crowded streaming space, Amazon believes a comprehensive music service is important to its bid to be a one-stop shop for content and goods, the sources said.

Amazon recently introduced its voice-enabled speaker lineup, dubbed Echo, which allows users to bark out commands to play music or interact with smart devices throughout their home. Echo could play a huge role in Amazon’s new streaming music service, as a second report from Recode indicates:

Amazon is also working on a second service that would differ in two significant ways from industry rivals: It would cost half the price, and it would only work on Amazon’s Echo hardware.

Industry sources say Amazon would like to launch both services in September, but has yet to finalize deals with major music labels and publishers. One sticking point, sources say, is whether Amazon will sell the cheaper service for $4 or $5 a month.

An Echo-only streaming service would be a unique offering that no one else in the industry is trying. It also runs counter to the modern notion that consumers want their music with them everywhere they go — on their phone, in their car, and at the office.

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Amazon shares rose $2.99 (+0.39%) to $762.47 in premarket trading Tuesday. AMZN has gained about 12% year-to-date, compared with a 7% rise in the benchmark S&P 500 index during the same period.

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