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Amazon Could Be the Next Giant in Music Streaming

Amazon Could Be the Next Giant in Music Streaming

If you own an Amazon Echo, you may be able to drop your Spotify subscription for a cheaper option.

Amazon has just released its own music streaming service with a tiered-subscription model called “Amazon Music Unlimited.” Subscriptions are as low as $3.99 per month for owners of its Amazon Echo speaker, $7.99 a month for Amazon Prime members and $9.99 for non-members.

Steve Boom, vice president of Amazon Music, calls this a huge shift in the music industry for those unwilling to pay $9.99 for subscriptions by undercutting the competition. “We’re moving music away from a one-size-fits-all approach,” Boom said. “We are the ones who have been pushing this the hardest.”

Streaming services pay a majority of their revenue to rights holders which often makes turning a profit nearly impossible. But with their own subscription model, Amazon can afford to take a loss on music streaming if it attracts loyalty to their Prime membership.

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