A trader during the Spotify IPO on the New York Stock Exchange, April 3, 2018.
Lucas Jackson | Reuters
Spotify shares fell 4.9% Monday after Amazon announced that the free music service will now be available on multiple devices.
Amazon Music listeners can now access the ad-supported service on iPhone, Android devices and on Fire TV. Previously, it was only available through Amazon Echo. Amazon's free music level consists of playlists and radio stations and is more like Pandora than the paid version of Amazon Music, which competes with Spotify and Apple Music.
Spotify dropped $ 7.25 to $ 1
Spotify has 248 million active users each month, including people who do not pay for premium subscriptions. The company predicted that the number would grow to between 255 million and 270 million in the fourth quarter.
Amazon Prime customers can access more than 2 million songs without ads as part of the membership, but can upgrade to Amazon Music Unlimited for $ 7.99 per month (or $ 9.99 for non-Prime customers). Amazon also recently introduced Amazon Music HD, which costs $ 12.99 a month for Prime subscribers and $ 14.99 for others. It delivers higher quality music, including new 3D audio that works with Echo Studio.
SE: Spotify outperforms 3rd quarter revenue with more premium subscribers