Amazon and Pandora to Gauge Music’s Value in the Internet Age
How much are people willing to spend for streaming music?
For years, thanks to rigid pricing structures at streaming services, the answer has been stuck at $10 a month or nothing. But that model may soon be challenged by two giants of online media: Amazon and Pandora Media. Both companies are set to introduce new versions of their streaming services in coming weeks, charging as little as $5 a month, according to multiple people with direct knowledge of the plans who spoke on the condition of anonymity because the process was ongoing. The plans will put pressure on incumbent players like Spotify and Apple Music and offer the music industry a major test regarding the value of streaming music — including the crucial question of whether discounts will be enough to entice people to pay anything when virtually every song is also available free.