The price of $10 a month has become the standard for music streaming services like Apple Music and Spotify. But according to the New York Times, Pandora and Amazon are set to challenge the norm and release a cheaper alternative at $5 within the coming weeks.
There has been many within the music industry that claim $10 a month or $120 a year, is too high for casual listeners, and that “Until the paid subscription rate gets to $5 per month, streaming is never going to scale.” This as you’d know if you keep up with our blog, is only partially true, as subscribers and income from music streaming has been steadily growing. But the question is how will adding a cheaper price point of $5 change this?
“Even with the presence of free, you can still get tens of millions to pay for streaming services — and possibly much more — in the event that you get the price much lower,” said David Pakman, former digital music executive and venture capitalist, who has long argued that a lower price point for streaming would lead to a greater number of sales over all.
Pandora is reported to be making the first move by unveiling, maybe as early as this week, an updated version of its $5 subscription. The service at present only removes ads from their internet radio service, but it will soon be offering many new features such as the ability to skip more tracks, and to store several hours of playlists.
It has been reported that by the end of this year Pandora hopes to develop a full streaming service to compete with the likes of Spotify and Apple Music. This is expected to be priced at $10.
Amazon are set to introduce their new music service with a full catalog of artists, tracks and albums, which they’re charging $10 a month for. This same service is also being offered to customers of Amazon’s Echo (the voice-activated speaker system) at half the price ($5).
To some degree, these new deals and offers from Amazon and Pandora may free up other companies to experiment with price, and different types of subscriptions.
Join Find What You Like for FREE with NO ads, to search, create and listen to your favourite music together.