Amazon’s Echo customers will be charged only $5 for the music streaming service against the industry’s going rate of $10.
According to several sources who are knowledgeable of the matter at hand, Amazon.com Inc. and Pandora Media Inc. are planning on launching new versions of their online streaming music services in the coming weeks.
The New York Times has reported that Pandora is likely to announce an expansion of its $5-a-month plan later this week. Potential features include the ability to skip songs or storing playlists for several hours.
Pandora is likely to launch a full-fledged on-demand music streaming service by Xmas. Its service will compete against those from Spotify and Apple and is likely to be priced at $10 a month.
The New York Times has also reported that Amazon is expected to reveal its own music streaming platform featuring a large catalogue for $10 a month. Existing customers to its voice-activated Echo service will be given a 50% discount, according to the NYT.
With both companies running marathon negotiations with music publishers and record companies for months, they are close to finalising a deal which will allow them to offer new services.
Earlier in June, Reuters had reported, citing sources that Amazon was preparing to launch a standalone music streaming subscription service at $9.99 per month, which was in line with its major rivals.
While Pandora declined comment, Amazon did not respond to requests for comments.