“Amazon.com Inc. on Wednesday launched a full-fledged music streaming service with subscriptions as low as $3.99 per month for owners of its Amazon Echo speaker, accelerating the industry trend toward more flexible pricing after years of sticking to $9.99 subscriptions,” Julia Love reports for Reuters.

“The new streaming service, called ‘Amazon Music Unlimited,’ lets users access a vast catalog of songs on demand, similar to Spotify and Apple Music. Subscriptions to play music on the Echo cost $3.99 per month; for access beyond that device, subscriptions cost $7.99 a month for members of Amazon’s Prime shipping and video service and $9.99 for non-members,” Love reports. “Amazon will continue to offer Prime members a limited streaming service for free.”

Amazon Echo

“The low price for Amazon’s streaming service is consistent with the company’s reputation for undercutting the competition and signals the music industry is beginning to accommodate consumers who are unwilling to pay $9.99 per month,” Love reports. “Streaming services must pay a majority of their revenues to rights holders, a business model that has left Pandora and Spotify struggling to turn a profit. But Amazon can afford to take a loss on music streaming, and the boost to Prime is well worth it, analysts say.

Read more in the full article here.

MacDailyNews Take: Start ’em at $3.99 on the Echo and get them used to having all the music at their beck and call. They’ll be upgrading to $7.99/mo. with Prime or $9.99/mo. before the first year is out.

Smart. Smarter than Apple’s been so far, in fact, which only offers a 3-month trial with a $9.99/mo. take it or leave it proposition.

Amazon will be a major player in music subscriptions.

As we wrote in March:

Something along the lines of Amazon Echo is what Apple should have done if run by competent, forward-thinking management. When Apple finally does do their version of Amazon Echo (and they will get around to doing such a product eventually) they will rightly be called a follower. The company had all of the ingredients to make their own Echo, before Amazon, except for the vision, it seems.

And, as we wrote on June 15th:

There could be a psychological component to this that leads people use Alexa over Siri precisely because they know the Echo is there (it’s a physical object), but forget about Siri being everywhere, even on their wrists (because Siri is embedded inside devices that are “for other things” in the user’s mind (telling time, watching TV, computing, phone calls, etc.) and therefore “hidden” to the user. Hence, Siri gets forgotten and goes unused while people use Alexa…

Again: We believe people use Alexa because Amazon Echo is a physical manifestation of “her,” while forgetting about Siri even though she’s on their wrists at all times and/or in their iPhones and iPads because Siri is hidden inside objects whose primary function is something other than “personal assistant” in people’s minds (watch, TV, phone or tablet, as opposed to “Siri.”) Alexa is present thanks to the Amazon Echo. Siri is absent because she has no such counterpart; no physical manifestation.

Siri is a ghost. Alexa is that cool, fun, glowing tube right there on the counter.

Apple would do well to not discount the psychology behind why people use certain features, even though cold, hard logic tells them it’s a redundant and unnecessary product.

An “Apple Echo” device would sell in the millions of units per quarter and boost Siri usage immensely.

Remember this: Apple’s pockets are deeper than everybody’s combined and in a race of the wallets, Spotify can’t even muster the entry fee.

Apple’s Jimmy Iovine: Here’s what we’re building – October 11, 2016
Apple’s Amazon Echo echo – September 26, 2016
Apple’s Amazon Echo rival said to include includes built-in cameras to read users’ emotions, recognize faces – September 23, 2016
Apple’s Siri-powered Amazon Echo-like device reportedly now in prototype testing – September 23, 2016
Why an ‘Apple Echo’ would be a hit – June 15, 2016
New Apple TV to take on Amazon’s Echo, source says – May 26, 2016
Apple preps Amazon Echo rival, opening up Siri – May 24, 2016
Apple should make a stationary voice command device like Amazon’s Echo – May 19, 2016
Google unveils its Amazon Echo knockoff called ‘Google Home’ – May 18, 2016
Where’s Apple’s answer to Amazon Echo? – March 31, 2016
Amazon Echo leads mindshare in smart home platform war – February 29, 2016
Why did Apple buy a startup whose tech can read emotions via facial recognition?/a> – January 7, 2016
Apple buys Emotient, maker of artificial-intelligence tech that reads emotion by analyzing facial expressions – January 7, 2016