In this blog post, I will be commenting on my peer’s blog post.
The blog post I am referring to is about a new service which Amazon has just released, Music Unlimited. It is essentially an online streaming music service, exactly like the services already provided by Spotify and Apple music. Music Unlimited is also priced the same as its competitors at $9.99, however Amazon Prime users get a 20% discount and are charged $7.99 per month.
While Aika’s blog mentions the positive aspects of Music Unlimited, I will be mentioning the negative ones. Amazon Prime users already have access to music through Prime Music. Prime Music provides free music to Amazon Prime users however it does not offer behind the scenes artist commentaries, playlists or as wide of a range compared to Music Unlimited. Now the question is whether the current Amazon Prime users would consider paying an extra $7.99 a month for these extra features keeping in mind that Prime Music already offers around 2 million songs to its users without advertisements.
Along with that, the music streaming market already has 2 huge competitors: Spotify and Apple Music. Even though Spotify was not the first in the music streaming industry, they were however the first to be successful. With their success and well established brand and Apple’s loyal customers, it is difficult for any other company to enter this industry. The question is that how big is the pool of Music Unlimited’s potential customers if we keep aside the loyal Spotify users, loyal Apple (and Apple Music) users and Prime Music users who do not think upgrading the Music Unlimited is worth it. In my opinion, Music Unlimited is likely to get a majori
While their strategy of reducing prices for Amazon Prime users is a very clever one and could potentially work due to the large number of Amazon Prime users, predicting the success of Music Unlimited is very difficult at this stage as it really depends on Amazon Prime users and is a true test for the marketing unit of Amazon. It will be interesting to see if Amazon manages to market and sell their new service, Music Unlimited, despite their very successful competitors.
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Peer’s Blog Post: https://blogs.ubc.ca/aikakim/