Amazon.com Inc is working on a music subscription service that would cost about $5 a month and would only work on its Echo hardware, tech news website Recode reported, citing sources.
Amazon would like to launch the services in September, but has not finalized deals with major music labels and publishers, Recode reported. Amazon was preparing to launch a standalone music streaming subscription service at $9.99 per month, in line with major rivals, Reuters reported in June, citing sources. The Recode report said one sticking point, sources say, is whether Amazon will sell the cheaper service for $4 or $5 a month.
In June this year, Reuters had reported that Amazon was planning to launch a standalone music streaming subscription service. The report quoted two people with knowledge of the matter and said the service will compete with Apple Music and Spotify.
According to Reuters sources, Amazon would price the service at $9.99 per month, and the report added the company was in the process of “finalising licenses with labels for the service.” The service will will be launched in late summer or early fall, said Reuters.
Amazon currently offers a free streaming music service with a limited catalog to subscribers of its Prime shipping and video service.
The new music offering is intended to increase the appeal of the Amazon Echo, its home speaker, which searches the Internet and orders products from the retailer with voice commands. “A music service will further increase the daily interactions between Amazon and its customer base,” said former music executive Jay Samit when told about the company’s plan.