It is reported that Amazon is in talks to offer a free level of advertising for its music service, according to a report from Billboard . Although there are no details on whether it will be more similar to radio or on demand, Billboard suggests that this new free service will emphasize Amazon as a direct competitor to the market leader Spotify.
Amazon plans to market the new option through its Echo speakers, and Billboard says it could be available as early as this week. The free level will have a limited catalog of music and, according to reports, Amazon obtained the licenses by offering the participating labels a deal to pay for transmission. The payment rate is not linked to the amount of advertising that Amazon sells.
Music is a solid part of Amazon's business; Last year, a representative told The Verge that Amazon Music has tens of millions of active subscribers. This could be partly due to offers in other countries. US Prime members have access to a select catalog of free music, and can purchase separately a monthly subscription for larger music, which varies from $ 3.99 to $ 9.99, depending on the number of devices used and if you are already a member of Amazon Prime. In other countries, such as India, Amazon offers much cheaper Prime memberships with integrated music and video services.
Despite the growth of Amazon Music, the category continues to be a leader in losses for the company. But, you can afford to subsidize the cost. Amazon made more than $ 10 billion in profits last year, in large part because of its cloud computing division, Amazon Web Services.