- On Monday, Amazon announced that the company has expanded its Amazon Music offering to allow users to stream free music on their iPhones, iPads, Android devices and Amazon's Fire TV products, as well as online.
- The company published a blog post saying that customers without Prime membership or subscription to Amazon Music Unlimited could now access ad-supported music for free. Previously, this was only available to customers using Amazon Echo.
- Investors on Wall Street seemed to think the announcement spelled bad news for market-leading market leader Spotify. Spotify shares fell 4.9% on Monday to $ 1
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Amazon extends its free music streaming capabilities to its users without Prime membership, Amazon Music Unlimited subscription or Amazon Echo. Spotify's 248 million strong user base could be gunning.
The company published a blog post on Monday detailing what non-paying users could now listen to Amazon Music.
"Customers who do not yet have Prime membership, or subscribe to Amazon Music Unlimited, can now listen to an ad-supported selection of top playlists and thousands of stations for free on their favorite devices," the post states.
The company currently offers a few different payment levels for its music streaming customers. Amazon Prime members have access to more than 2 million ad-free songs. By upgrading to Amazon Music Unlimited, at $ 7.99 per month for Prime members and $ 9.99 for non-Prime members, users have unlimited access to the platform's music library.
Previously, the company offered a free, ad-supported version of its music service only to Alexa users on Echo devices.
Monday's announcement seemed to indicate that the company was looking to hook some of Spotify's millions of customers. The latest popular music streaming service report said it had 113 million subscribers, paying $ 9.99 / month, as well as a larger body of 248 million active users who can listen to the app's free ad-supported music.
But Spotify's free, ad-supported teams are still more developed than Amazon Music, so users can create playlists and play music on demand from their laptops and desktops.
Wall Street Reacts
Spotify shares fell about 5% in ordinary trading on Monday as investors reacted to the renewed competition from Amazon.
Spotify is currently leading the music streaming market, surpassing Apple Music in the number of subscribers. . Last month, the company beat analysts' estimates of the number of paid users and made a surprising profit.
However, both Amazon and Spotify may face more challenges in the future as other companies begin to enter the music streaming market. The Financial Times reported Sunday that ByteDance, the Chinese company behind the video app TikTok, was also in talks to launch its own music streaming service.