With the announcement of Amazon and Pandora’s cut price $5 per month streaming services, it seems they have opened another section of the market where there’s room for competition, and everyone seems to be looking at getting their share of the $0 to $10 a month subscription range.
Now That’s What I Call Music, a joint venture between Sony Music Entertainment and Universal Music Group, are a company that release compilation albums of the latest pop hits. And they have just launched a streaming app called NOW Music+ that will serve up playlists of hit songs for £4.99 (about $6.50) a month, or for £5.99 through Apple’s App Store.
NOW Music+ was activated this summer, but with minimal advertising and promotion it has slipped under the radar but this seems like preparation for a further broader rollout of the service. Although currently the app is only available in the UK, the company has stated on their site that “this may change in the near future.”
This seems to be the new trend with music streaming services, they offer you a cut price streaming service but also cut the features. The case is the same with NOW Music+ as users have a limited catalog to pick from and does not allow users to listen to songs on demand.
Even though this is the case the industry is taking an overdue step towards offering alternatives to paying $9.99 a month and ad featured free services.
Mark Mulligan of MiIDiA, has been a long time advocate of music streaming services offering an alternative he has stated that “They’re making people choose between a Lexus and getting the bus with nothing in between,” “There’s no other market that behaves like that.”
David Pakman, a partner at Venrock who was in charge of Apple’s early music efforts, has also agreed, “The services are exhausting the number of people who will pay $10 a month, and the way to continue to grow the industry is to offer discounts in some way,”