Amazon
wants to launch a music subscription service that would work the same way
services from Apple, Spotify and many others work: $10 a month, for all
the music you can stream, anywhere you want to stream it.
But
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 Amazon
rep declined to comment.
The
$10-a-month service would replicate features that used to be hard to find but
are now common: Unlimited, ad-free music you can play on any device you want
and also download for offline playback.
The
lower-priced service would represent a novel approach. Other services have
tried, without success, to offer subscriptions in the $5 range. But those have
usually been variants of web radio services, which don’t let users play any
song they want, whenever they want.
That’s
also the approach Pandora is taking with a new $5 service it has in the works,
which it wants to launch alongside a standard $10-a-month service.
Amazon’s
discount service would be different, industry sources say, because it would
work like Spotify or Apple Music — unlimited, ad-free music on demand — but it
would be constrained to Amazon’s Echo player, and wouldn’t work on phones.
That runs
counter to conventional wisdom in the music business, which believes that most
people value the ability to take their music with them and play it whenever
they want.
The
overwhelming majority of Spotify subscribers sign up on phones. And when Apple
Music launched last year it focused all of its attention on iPhone users, and
eventually on Android phone owners as well.
Amazon
launched the Echo — an internet-connected speaker powered by Alexa, the
company’s AI software — last year, and reportedly sold a million units. It
hopes to sell three million this year and 10 million in 2017, The
Information reports.
Amazon
already offers an Amazon Music service free for Amazon Prime
subscribers, but that service only has a limited catalog of music.
If Amazon
launches the music services, it will be the second time it has offered digital
media subscriptions as à-la-carte offerings, instead of tying them to its
Amazon Prime delivery service.
Earlier
this year Amazon started selling its video subscription service, which it
offers for free to Amazon Prime subs, as a standalone service for $9 a month.

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