Spotify s activities dived when Amazon declared interest in free streaming music

An unconfirmed rumor about Amazon's latest plans was enough to make Spotify's share price go down by 4 percent. Does the online giant want to create its own website for streaming music?

At least that's what the sources on the Billboard website claim . The new Amazon service would be based on the broadcast of commercials between the songs being played, i.e. work in the same way as a free Spotify account. The difference is that Amazon can have much better infrastructure.

Alex , let's listen to some music

Of course, these are Echo speakers, currently sold as smart home equipment with Alexa voice assistant on board. Interestingly, Amazon offers its customers one music streaming service. As part of Amazon Music Unlimited, more than 40 million songs are available to users, as well as thousands of playlists and personalized radio stations that are created by music experts hired by the company.

The client application for this service is available for iOS, Android, macOS, Windows and Fire TV. There is also a web version available. The cost of the service is 3.99 euros per month for one person or 5.99 for a family plan (6 users).

Amazon Music will threaten Spotify for free

The best proof of this was the rapid drop in Spotify prices, recorded a few days after Billboard published anecdotal information about the free version of Amazon Music. According to sources, Amazon would have to pay music labels for every song reproduction, regardless of the number of commercials advertised.

That's it when it comes to gossip. Amazon refused to give any comment on the matter, so we can only guess if reports of creating a free, Amazon Ads-powered version are true or not. If I had to guess, I would say that such a scenario seems highly probable.

Although there probably is a reason why Amazon has not yet launched the free version of its music streaming service. Maybe it's about negotiating with labels that are slowly coming to an end, thanks to which Alex will soon offer a new option to its users?



Spotify's activities dived when Amazon declared interest in free streaming music

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