Amazon.com Inc. (NASDAQ:AMZN) rolled out a music streaming service on Wednesday. The full-fledged service, dubbed Amazon Music Unlimited, will carry a monthly fee of $3.99 for users of its Amazon Echo speaker and will compete in the market with Apple Music and Spotify.
People who don’t own Echo can subscribe to the service for $9.99 per month, while Amazon Prime member can get the service for $7.99 a month. The company will continue to offer a limited streaming service to its Prime members free-of-cost.
AMZN’s Echo is a smart speaker that listens and responds to the voice commands. The device soon become famous after its launch last year. The company is betting on the gadget to boost its reach in the crowded streaming market.
Amazon Music’s vice president, Steve Boom believes that smart home gadgets like Echo will be an important source for the music industry. Boom said ‘’the first phase of growth was driven almost entirely by smartphones…….we believe pretty strongly that the next phase of growth in streaming is going to come from the home.”
Shares of Amazon fell 1.27 percent to $831.00 on Tuesday. The 52-week range of the stock is $474.00-$847.21. The stock has surged about 20 percent so far this year. The company’s market cap is $395.03 billion and P/E ratio is 207.22.
The Seattle-based Amazon is an electronic commerce and cloud computing company and is the biggest Internet-based retailer in the world in terms of overall sales and market cap.