Published: Tue, November 19, 2019
Electronics | By Kelly Massey

Spotify's stock drops nearly 5% after Amazon expands free music service

Spotify's stock drops nearly 5% after Amazon expands free music service

Of course, if you're subscribed to Prime, you'll have all these music services on demand with no ads - as well as access to other Amazon services like Prime Video and so on. Previously, this was only available to customers using Amazon Echo.

On Monday, the company began offering an ad-supported version, simply called Amazon Music, that'll offer you access to top playlists and thousands of stations at no charge.

Spotify dropped $7.25 to $140.26 at the close.

Amazon Prime customers get access to more than 2 million songs ad-free as part of their membership but can upgrade to Am. It may be gunning for Spotify's 248 million-strong userbase.

Amazon Music is designed for those without an existing Amazon subscription, as there are already benefits for Amazon Prime member and those who subscribe to Amazon Music Unlimited.

Amazon Music listeners can now access the ad-supported service on the iPhone, Android devices and on Fire TV.

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Now anyone can now listen to Amazon's music streaming service for free.

But Spotify's free, ad-supported tier is still more developed than Amazon Music, allowing users to create playlists and play music on-demand from their laptops and desktops. Regularly, Amazon Music Unlimited costs $7.99 per month (or $79 per year) for an annual subscription for Prime members; for non-Prime customers, the regular fee is $9.99 per month.

Amazon shares were up almost 0.5%, while those of of rival Spotify Technologies fell about 5%.

However, Apple Inc's Apple Music offers only paid subscription service for US$9.99 per month and accounts for almost a fifth of the paid music streaming market, according to Counterpoint Research.

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