• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 15, 2026

1

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 15, 2026
TechFortune 500

Amazon’s Low-Priced Music Streaming Service Challenges Apple and Spotify

By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
October 12, 2016, 3:43 AM ET

Amazon.com (AMZN) on Wednesday launched a full-fledged music streaming service with subscriptions as low as $3.99 per month for owners of its Amazon Echo speaker, accelerating the industry trend toward more flexible pricing after years of sticking to $9.99 subscriptions.

The new streaming service, called “Amazon Music Unlimited,” lets users access a vast catalog of songs on demand, similar to Spotify and Apple (AAPL) Music. Subscriptions to play music on the Echo cost $3.99 per month; for access beyond that device, subscriptions cost $7.99 a month for members of Amazon’s Prime shipping and video service and $9.99 for non-members. Amazon will continue to offer Prime members a limited streaming service for free.

As it plunges deeper into the crowded streaming field, Amazon is counting on the Echo, a smart speaker that responds to voice commands, to set it apart. Released broadly last year, the Echo has become a surprise hit, prompting many to predict that voice will become a key way users interact with technology – and music is central to the device’s appeal.

Amazon has built an elaborate system of voice controls for listening on the Echo. The company believes such smart home devices will be a key source of growth for the music industry, said Steve Boom, vice president of Amazon Music.

“The first phase of growth (in music streaming) was driven almost entirely by smartphones,” he said in an interview. “We believe pretty strongly that the next phase of growth in streaming is going to come from the home.”

Reuters reported details of Amazon’s streaming plans in June.

The low price for Amazon’s streaming service is consistent with the company’s reputation for undercutting the competition and signals the music industry is beginning to accommodate consumers who are unwilling to pay $9.99 per month. Having watched revenues plummet from the CD era, label executives have been reluctant to budge on price, but they have come under pressure as streaming accounts for more of the pie.

Boom said he is optimistic that the new prices will expand the market.

“We’re moving music away from a one-size-fits-all approach,” Boom said. “We are the ones who have been pushing this the hardest.”

Streaming services must pay a majority of their revenues to rights holders, a business model that has left Pandora and Spotify struggling to turn a profit. But Amazon can afford to take a loss on music streaming, and the boost to Prime is well worth it, analysts say.

The premium music service, following the release of a standalone video service, suggests Amazon will increasingly offer basic media options through Prime while selling additional subscriptions for consumers who want to go deeper, said analyst Jan Dawson of Jackdaw Research.

“It’s just making Prime that much stickier,” he said.

Amazon is also hopeful that artificial intelligence will keep users tuned in. Recommendations based on listening habits have become a staple of streaming services, and Amazon has also woven artificial intelligence into the system so users can request songs that fit a particular mood or search with lyrics.

Data from the Echo has taught Amazon much about the language of music, said Kintan Brahmbhatt, director, Amazon Music.

“You can ask for Michael Jackson by saying, ‘Play music by the King of Pop,'” he said. “It’s smart enough to know that’s what you meant.”

For more on the music streaming industry, watch Fortune’s video:

Despite the low price for Echo-only subscriptions, Amazon and the labels are likely betting that consumers will be motivated to upgrade so they can listen on more devices, said Ted Cohen, managing partner of TAG Strategic.

“At a certain point you’ll get frustrated and go, ‘Oh, what the heck,'” he said.

About the Authors
By Reuters
See full bioRight Arrow Button Icon
By Michelle Toh
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

SpaceX heads into a record-shattering IPO with the ‘deepest moat that exists today’ as investors vow to ‘never bet against Elon’
InnovationIPOs
SpaceX heads into a record-shattering IPO with the ‘deepest moat that exists today’ as investors vow to ‘never bet against Elon’
By Jason MaMay 16, 2026
50 minutes ago
tarot
AICulture
We talked to 12 tarot card readers who are using AI. They split in 2 camps, with big implications for the technology
By Ziv Epstein, Farnaz Jahanbakhsh, Vana Goblot and The ConversationMay 16, 2026
3 hours ago
liberman
Commentarystart-ups
We watched social media concentrate. The same thing is happening in AI, only at a deeper layer
By David Liberman and Daniil LibermanMay 16, 2026
4 hours ago
mustafa suleyman
AIMicrosoft
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
5 hours ago
olivier
CommentaryAnthropic
I’ve been studying Big Tech for a long time. What just happened with Anthropic and the Pentagon terrifies me
By Olivier SylvainMay 16, 2026
5 hours ago
bhaskar
Economydisruption
The prophet of the ‘Wired Belt’ says capitalism is finally eating itself
By Bhaskar ChakravortiMay 16, 2026
7 hours ago

Most Popular

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
3 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
4 days ago
Current price of oil as of May 15, 2026
Personal Finance
Current price of oil as of May 15, 2026
By Joseph HostetlerMay 15, 2026
1 day ago
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
5 hours ago
Debbie Gibson, Geezer Butler of Black Sabbath want you to adopt a beagle rescued from an experimental lab in Wisconsin
North America
Debbie Gibson, Geezer Butler of Black Sabbath want you to adopt a beagle rescued from an experimental lab in Wisconsin
By Scott Bauer and The Associated PressMay 13, 2026
3 days ago
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
Travel & Leisure
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
By Catherina GioinoMay 12, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.