With online streaming platforms like Apple Music and Spotify becoming so successful, other companies like Amazon and Pandora are trying to get in the game.
Online music streaming services have blown up over the past few years thanks to giant platforms like Apple Music and Spotify. However, now other big companies are trying to get in the game to compete in the industry.
According to Ben Sisario from The New York Times, both Amazon and Pandora are in the process of developing their own online music streaming platforms. While Pandora already does online streaming, they are looking to move towards a subscription-based platform that allows for users to search for specific music, much like Spotify.
Both Amazon and Pandora are planning to compete with music streaming giants immediately by offering a $5 a month price point. Pandora’s service is expected to drop as early as next week, while Amazon’s could arrive in the next month.
While this may sound like a great idea for both companies, they may find out quickly that these subscription prices could be too low. Both Amazon and Pandora are in the process are negotiating licensing rights with record labels to stream their music, which is getting increasingly expensive due to the emergence of so many platforms.
The key for both companies will be to generate large enough user bases to warrant $5 a month subscription fees. If they can’t do that quickly, then they could find themselves abandoning their respective endeavors. Until then, Spotify and Apple Music will continue to reign supreme with TIDAL and other platforms attempting to gain ground.