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$5/mo music streaming services are coming from Amazon and Pandora

The music streaming market is already crowded, and now two heavyweights are preparing to join the fray.
By
September 12, 2016
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The music streaming market is already crowded, and now two heavyweights are preparing to join the fray.

Amazon and Pandora are reportedly gearing up to release music streaming services that would take on Spotify, Google Play Music, and Apple Music. The two “newcomers” aim to attract customers with prices as low as $5/month.

Amazon already offers a limited catalog of music tracks as part of its $99/year Prime service.

Over the past months, Amazon has been in talks with music labels to launch a new service with a full catalog, anonymous sources told the New York Times. The service would cost $10/month for regular users, and from the sound of it, Prime subscribers would have to pay separately if they want it. However, customers who buy Amazon’s Echo digital assistant will be able to pay just half of the regular fee, or around $5.

Meanwhile, Pandora is said to upgrade its $5/month premium service to include the ability to skip a number of tracks and to store playlists online. Right now, Pandora operates an “online radio” service that only lets users pick the style of music they want to listen to. Pandora’s goal is to offer a full-fledged competitor to Spotify by Christmas, says the New York Times.

Despite some attempts to undermine it – most notably by the defunct Rdio – major streaming services have all settled on asking $10/month for their premium tiers, a price level that is believed to be dictated by labels. But if Pandora and Amazon manage to shake up the establishment, they might force Spotify, Apple, or Google to tweak their prices.

Have you signed up for a music streaming service? Which one and why?