Amazon and Google's new music services show they're trying to keep more smart speaker music consumption on their own platforms:
Last week, Amazon and Google each launched music-streaming apps exclusively for their respective smart speaker devices:a free, ad-supported tier of its music streaming service available only on Alexa-supported devices, including the Echo smart speaker, per The Verge. This is the first time that Amazon has offered an ad-supported tier of its music service: Amazon Music comes bundled into Prime membership, or subs can pay a monthly fee ranging from $4 to $10, depending on the tier.
In the near term, Amazon and Google are likely aiming to keep a higher proportion of smart speaker music consumption on their own platforms rather than letting it go to others like Spotify, allowing them collect valuable listener data.to make their new services the most frictionless options for listening to music through their voice assistants. A simpler experience could incentivize smart speaker owners to listen exclusively through their services.
If Amazon and Google are to make listening to music on smart speakers even more accessible, that will likely help their stickiness within consumer households, given consumers' enthusiasm about listening to music on the devices. And ultimately it could help them grow or retain market share, particulary as the smart speaker market matures.Both Google and Amazon are likely trying to convert smart speaker users to premium tiers of service in the long term.
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