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Amazon.com, Inc. (AMZN) - $25 value - yours FREE >>
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Amazon Plans to Come Up with New Music Streaming Service
Reportedly, the Seattle-based technology giant Amazon (AMZN - Free Report) is looking to launch a music streaming service in the late summer or early fall.
Amazon is looking to expand its business with a $9.99 per month music subscription service. Reportedly, the company is in talks with the music industry over licensing deals but there aren’t too many details available about the new service.
Amazon already has a music service “Prime Music” which is exclusively for Amazon Prime members. It has a library of 1 million songs which pales in comparison to that of Spotify or Apple's (AAPL - Free Report) Apple Music.
However, this service will be distinct from Amazon Prime Music. The company intends to bundle this service with its Echo smart speaker, allowing voice commands to manipulate the player.
AMAZON.COM INC Price
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Competition
Music streaming is becoming increasingly competitive, attracting leading technology companies namely, Apple and Spotify. Other notable players in the market include Pandora , Google’s (GOOGL - Free Report) Youtube and Tidal.
These music giants have already carved out distinct territories in the market. Spotify already boasts more than 30 million songs, while Apple music service, which was launched last year, currently boasts 13 million paid subscribers compared with 11 million two months ago.
Bottom Line
The world’s biggest online giant is taking the necessary steps to expand its user base and thereby increase its sales. Amazon is introducing many technological innovations to further strengthen its brand, improve efficiency and execution as well as increase profitability.
Although a late entrant to the music streaming party, its huge and loyal customer base may help it to gradually wean out customers from other services.
However, for now, we wait to see whether Amazon’s new music service manages to carve out a niche for itself or not.
Amazon currently carries a Zacks Rank #3 (Hold).
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