Amazon is reportedly working on a $5-per-month music streaming service which will be exclusive to owners of the Amazon Echo internet-connected speaker/virtual assistant.
Recode reports Amazon has plans to debut the new subscription service in September. It will be unveiled alongside a $10-per-month streaming service that will compete directly with established services, such as Apple Music and Spotify.
Recode’s sources indicate the online retail giant hasn’t yet reached a deal with major music labels, as the parties are debating on whether Amazon sells the Echo-only service for $4 or $5 per month. While the $10-per-month package will offer features similar to other streaming services, such as ad-free listening and an option to download music for offline listening, the $5-per-month package will be Echo-only, and won’t be available via the users’ smartphones or computers.
“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.”
Amazon already offers an Amazon Prime Music service as part of its Amazon Prime subscription package. However, the music library is limited when compared to those available via Apple Music, Google Play, and the like.
MacRumors notes the Amazon Echo, which began shipping last year, has sold a million units. Amazon hopes to sell three million of the internet-connected devices this year, and 10 million in 2017, which would make it a roughly $1 billion hardware business.
