Amazon.com Introduces Music Unlimited Family Plan

By Markets Fool.com

Image source: Amazon.

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What happened?

Following Amazon.com's (NASDAQ: AMZN) launch of Music Unlimited last month, a new on-demand streaming service that is much broader than the previous Prime Music offering, the company has made good on its promise to launch a family plan. The price for a family plan is $15 per month and will include access for up to six family members, each of whom need a separate Amazon account in order to create personalized recommendations.

The individual plan includes a generous $2 per month discount for Prime members, which brings the monthly cost to $8. The family plan pricing for Prime members is less generous, and the only discount is $149 per year, which translates into two months free.

Does it matter?

Unlike Prime Music, which is a benefit that's included at no additional cost but more limited in scope, Music Unlimited is mostly a separate service that only receives discounts from having a Prime membership. Amazon is also forgoing its typical strategy of aggressively undercutting on price, as family plans from competing services Apple Music and Spotify are also $15 per month (those services do not offer discounts for annual subscriptions, though).

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Amazon Music Unlimited doesn't appear to be particularly differentiated, and it's quite late to the market. It's hard to imagine the service garnering a large number of subscribers or moving the needle in any meaningful way for the e-commerce giant. In addition, the Music Unlimited discounts that a Prime membership gets are modest, so are unlikely to drive Prime membership adoption, either.

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