In the early days of music streaming, companies experimented with offerings priced at around $5, but those services usually came with stringent limitations on song skipping or number of registered devices. Consumer response was tepid, as users seemed willing to spend the extra money for full control over their listening experience. Industry competitors, led by Spotify and Pandora, ultimately settled on a $9.99 per month sweet spot, a price point more recently adopted by Apple Music.
As noted by today's report, portability is one of the main draws of any streaming service. For many subscribers, the ability to keep an essentially unlimited music library in your pocket is worth the price of entry. Amazon's plan, at least for the cheaper $4 or $5 a month version, is to add value to a family of devices used mainly at home (although the Amazon Tap is a portable bluetooth speaker). Echo already supports a number of streaming apps including Pandora, Spotify and Amazon Music, the latter of which provides Amazon Prime members free access to a comparatively small music library.
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