Amazon takes on Spotify with a new streaming music service

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Amazon have launched their long-awaited standalone music streaming service and are immediately competing with rivals offering cheaper subscription prices.

Amazon has just announced a new on demand streaming service, simply called Amazon Music Unlimited.

Existing Prime members can subscribe for $7.99 per month or $79 per year, while non-Prime members will pay $9.99 per month. Access to Amazon Music Unlimited from a single Echo costs just $US3.99 a month.

The music business, which had been painted into a corner with the advent of online streaming services - like YouTube, for instance - has a crying need for a business model rejig. When it is, you can pay a whole year upfront at $149.99, which works out at $12.41 a month.

Amazon Music Unlimited has a catalog of tens of millions of songs from all three major labels as well and thousands of independent music labels. Alexa will also be able to find music by lyrics when users can't remember the name of a song. It's compatible with Android and iOS-based mobile devices, Windows PCs and Macs, the web, and other devices. Whether the possible discounted subscriptions give Amazon enough power to rival streaming powerhouses like Spotify will have to be seen.

While Amazon Music Unlimited has initially launched in the U.S., it's been confirmed it will be made available in the UK, Germany and Austria later this year.

So what sets Amazon Music Unlimited apart from the other exhausted music streaming services?

His research suggests that 70 percent of Spotify's U.S. premium subscribers were also Amazon Prime households, while 75 percent of Apple Music use Prime, and 74 percent of Pandora One users pay for Amazon's Prime service. However, Amazon did not specify how many "tens" we're talking about. Steve Boom [no really. ed], vice president of Amazon Music told Reuters that the outfit thinks smart home devices will be a key source of growth for the music industry.

Third of all, Music Unlimited is the new version of Amazon Prime Music. Note that the company did not list all Alexa-powered devices, such as the Fire TV.