Almost all premium music streaming services require their subscribers to pay $10 per month, but it appears that Amazon and Pandora are looking to shake things up. A new report suggests that both companies are going to launch new music streaming services in the coming weeks which will be priced at $5 per month, thus undercutting competitors like Spotify and Apple Music by a significant margin.
The New York Times reports that Pandora’s cheaper music streaming service is going to launch first, perhaps as soon as next week, whereas Amazon’s new service will be offered to owners of its Echo speaker a few weeks later.
Pandora became popular due to its ad-supported free internet radio service and the $5 premium subscription will provide subscribers with an ad-free experience and enable them to skip a few tracks. It may also offer a $10 subscription option to match competitors like Spotify and Apple Music. The $10 subscription option may be launched by Christmas this year.
Amazon is also expected to charge $10 per month for its new music streaming service, the report does mention that those who own the company’s Echo speaker will only have to pay $5 per month for it. The service is said to offer a significantly wider catalog of music than what existing Amazon Prime subscribers get. Its service is expected to arrive before the holidays this year.