Amazon has a plan in the works to undercut rivals such as Apple and Spotify, who offer streaming music services for about $10 a month, by providing a subscription service for about half that price, Recode reports. The big catch: The service would only work on Amazon’s Echo hardware.
The company also has its own $10-a-month service in the works, which closely resembles the Apple and Spotify models.
“Industry sources say Amazon would like to launch both services in September, but has yet to finalize deals with major music labels and publishers,” Recode reports. “One sticking point, sources say, is whether Amazon will sell the cheaper service for $4 or $5 a month.”
The report adds: “The lower-priced service would represent a novel approach. Other services have tried, without success, to offer subscriptions in the $5 range. But those have usually been variants of web radio services, which don’t let users play any song they want, whenever they want.”