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Most subscriptions services like Beats Music and Spotify focus on streaming the songs for a set fee, though Spotify and Pandora each offer a free, ad-supported streaming service. Netflix charges about $8 a month and is rolling out a price increase to $9.Prime Music makes Amazon one of the rare companies offering both music downloads (songs that you can buy) and subscriptions. The Beats service and Spotify each charge subscribers $10 a month Beats also charges $99 for an annual membership, the same price as more diverse Prime.
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Amazon's advantage, however, is the package including both music and video - plus shipping and e-books - for a lower yearly price than the sum of the parts elsewhere.
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The trade-off in agreeing to such windows is that Amazon lowers the cost of licensing.Given the limitations of its music offerings, Amazon is unlikely to attract new Prime members solely by the virtues of its music-streaming product. Amazon said its deals bring some songs on board right after they're released, but others will be delayed, a tactic known as "windowing." None of its deals with music providers have delays longer than six months, the company said.
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Amazon's music download store has almost 30 million tracks, and a "substantial" portion are never downloaded, he said.And,as reported earlier by Buzzfeed, Prime Music won't always get tracks as soon as they are available. The Prime program, which has tens of millions of members, already offers two-day shipping on select Amazon purchases, a Netflix-like streaming video service, and a lending library of e-books for Kindle devices, the Amazon family of tablets and e-reader.The number of songs in a catalog is a "red herring," Boom said. Those sales countered a slide in physical sales (think CDs) and a slight decline in digital music download revenue.But the nascent model has yet to prove it can be profitable -reportedly, even as Spotify's revenue has grown, so too have its losses.Amazon's unique take, bundling music as part of its Prime service,underscores how companies are still trying to figure out a business model that works. Revenue from subscription and streaming services rose 51 percent to top $1 billion for the first time last year, according to the International Federation of the Phonographic Industry. In the past few years, services offering all-you-can-eat music for a monthly fee have become recorded music's brightest spot of revenue growth. "People are paying for a lot of music they're never going to listen to." AmazonThe Seattle-based e-commerce company is the latest tech giant to turn on a subscription streaming-music service. Universal, the world's biggest recorded music company, is absent.Bycomparison, Spotify, the leader in subscription streaming music with 10million paying members, andBeats Music, which Apple agreedto buy last month for $3 billion, have catalogs withmore than 20 million tracks."A lot of these services have more music than people will ever listen to,"Steve Boom, Amazon's vice president of worldwide digital music, said in an interview. Prime Music goes live Thursday with more than 1 milliontracks pulled from the catalogs of two of the top three record labels - WarnerMusic Group and Sony Music - as well as from large independentlabels. Amazon adds streaming Prime Music to play against Apple's BeatsĪmazon launched a streaming-music service called Prime Music, making the gamble that adding on-demand tunes to its $99-a-year Prime service will be more important in drawing new members than matching the exhaustive catalog offered by rivals Spotify and Apple's to-be-acquired Beats Music.
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