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Amazon makes its music streaming service free with ads

Sarah Perez

Amazon is making its music streaming service free. The company previously offered free, ad-supported streaming only to customers who owned an Amazon Echo device. Now it's rolling out free streaming to anyone using the Amazon Music app on iOS, Android, Fire TV and Amazon Music on the web in the U.S., U.K., and Germany.

The company has been steadily making its music streaming service more accessible by reducing prices. Earlier this year, for example, Amazon said it would no longer charge the $3.99 per month for streaming from Amazon Music Unlimited to Echo devices or require customers to pay for Amazon Prime in order to gain access to Prime Music's smaller, 2+ million song catalog. Instead, it rolled out an ad-supported version of Amazon Music for free to Echo owners.

This is basically the same 2 million song catalog that comes with Prime Music, it just includes advertising and doesn't require Prime membership.

Now, it's making Amazon Music free for anyone -- Echo owner or not -- across a range of devices. This will allow users to play thousands of stations based on any song, artist, era, or genre, similar to Pandora . They'll also gain access to top playlists, like "All Hits" featuring the world's top songs, or the "Holiday Favorites" station, among others.

The move doesn't really threaten paid subscription services like Spotify or Pandora's premium tier or Apple Music, as Amazon's free service has a much smaller catalog. It's also not nearly as advanced in terms of its personalization technology, which powers things like Spotify's Discover Weekly and other custom playlists. These are a big draw for music fans, and a reason they opt for one streaming service over another.

Instead, Amazon's free music service serves more as a way to upsell consumers by encouraging them to join Amazon Prime in order to remove the ads from their music. (Prime Music's 2 million songs are an added perk of a Prime subscription.) This is Amazon's true motive: lock in more customers to Amazon Prime, ensure they realize the value of the free shipping and other benefits, then get them to renew every year. Once a Prime member, people will shop more often from Amazon, which is where the retailer's profits lie.

The free music service also serves as an entry point into Amazon's wider music ecosystem. If customers decide they want a larger, ad-free catalog, they can up to join Amazon Music Unlimited instead, which offers 50 million songs at $7.99 per month for Prime members, or $9.99 per month for others. And true audiophiles can upgrade to Amazon Music HD for $12.99 per month for Prime members, or $14.99 per month for non-members.

For the time being, Amazon is offering 4 months of Amazon Music Unlimited for $0.99.