By Elizabeth Martinez,
Money and Investing Writer
Last Monday, November 16, Amazon (NASDAQ:AMZN) released Amazon Music Unlimited in the UK, and went head to head with major competitors Spotify and Apple Music.
Amazon seems to be planning even greater expansion of this service very soon, with expectations to soon offer it to Germany and Austria as well.
This instant streaming service has a catalogue of around 40 million songs, which is substantially larger than the 2 million songs offered with the standard Amazon Prime account.
Not to mention all of the new features associated with Amazon Music Unlimited, such as song recognition based on just a few lyrics, artist commentary’s and insights into their tracks, and even entire song play lists which correspond to your mood, all of which make Amazon a formidable opponent against its already established competitors.
These small features which set Amazon apart from its competitors may even enable them to steal away some of their major competitors customer base, especially if they can convince artists like Taylor Swift who didn’t even allow her album 1989 to be sold on Apple Music when the streaming service launched in 2015, on board.
This would further differentiate them from their competitors which already have a very large share of this market space.
In the UK, Amazon Music Unlimited now costs approximately £9.99 (or $12.50), as compared to only $9.99 for those in the United States. Although it is cheaper to use Amazon Music Unlimited here in America, there are a few fairly practical ways to lower the additional costs of this service for those in the UK, and soon, other European nations as well.
For example, if you own either the Dot, or the Amazon Echo Smart Speaker, that cost drops to a mere £3.99 a month. The Amazon Echo Smart Speaker only came out in September of this year though, so the number of people able to access this discount in the UK may be fairly low.
The only catch with this enormous discount, is that if you choose to obtain the lower priced service by signing up for it through your Dot or Echo device, you can only use the service on that device.
Amazon has lately been in the habit of investing in many different potential startups, and maintaining only the best of the best of these.
This helps to explain how their stocks have been able to stay on a continual rise in the last five years, even though in the last two months they have seen a slight drop (as have the majority of companies in the stock market).
Hopefully, this new venture will prove to be fruitful for Amazon, and allow them to expand their empire further into this music industry.
If all goes according to plan, Amazon Music will use its large, preexisting customer base from Amazon Prime memberships to fortify its start in the UK and Europe.
This strategy of growing the company from the inside out is likely to help them propel this service throughout Europe in the near future.
Amazon is definitely the competitor to watch as they creep their way deeper into the music industry.
A version of this article appeared in the Tuesday, November 22nd print edition.
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