Amazon Set up to Increase Consumers: Music Via Echo

Amazon Set up to Increase Consumers: Music Via Echo

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When music is brought into the business and commodity world it makes consumers consume. Music is such a wonderful thing to share with society, which is why everyone wants to get involved with it in one way or another- specifically, Amazon. Well ladies and gents, the battle is on to get more people hooked on Amazon ahead of the holidays, and music is the latest attraction.

Amazon.com Inc. is functioning on a stand-alone music-streaming service and more details will be released in the coming weeks. How does it compare with other music services? Well with a price reported to be about $5 a month, the new service would evidently be cheaper than competing streaming deals such as Spotify and Apple Music.

But for Amazon, making money from music is just a bonus. Instead, Amazon plans to use streaming music to increase sales of Echo, a gadget that let functions in multiple ways. People will be able to use voice commands to access information, organize schedules and make purchases online.

A central influence for Echo – is the idea that users will be able to use a simple voice command to instantaneously stream a song of their choice, which is pretty cool. Even though as we all know the music-streaming market is quite competitive that isn’t stopping Amazon. In addition, Amazon is willing to lose money on a cheap offering to attract more shoppers to the Echo, with the ultimate goal of embedding all of its services more deeply in users’ everyday lives. This is similar to sports athletes taking a pay cut to stay with a particular team or help out the team. Sometimes you take risks. Bigger risk bigger reward?

You can use the personal assistant for many things. Such as to control lights in your home, check the weather, get recipes, order a pizza or pay a credit card bill, all starting with the wake word “Alexa” before giving a command. People love to multi-task so these are some great features.

Music as a hook is what Amazon is trying to do. Music is a universal engagement device, appealing to virtually many users. I mean who doesn’t like music?  Setting up an Echo to play music through an Amazon Prime account, which includes access to more than a million songs as well as playlists, is a popular skill to get people acquainted with the technology.

New Echo users plug in a device and connect it to Wi-Fi using an Alexa Smartphone app. From there, people can select a playlist or song through voice command. The device can also be synced with rival music services like Spotify Inc. for streaming. Users can upload their music collections to an Amazon music library, and access that through Alexa additionally.

Amazon is working on a streaming service that will be merged with Echo devices and cost $4 or $5 a month. This is less expensive than individual premium services from Spotify and Apple Music, which both go for $10. Even if Amazon loses $5 per month per person to offer a low-cost streaming service that helps it sell more Echo devices, the company will make more than that by getting people deeper into its web of online shopping options and Prime membership.

This couldn’t have come at a better time as the holiday season is just around the corner. Amazon has historically relied on the holiday shopping season to entice consumers to try Prime membership by offering free trial subscriptions right at the time people are doing the most online shopping. In this year’s fourth quarter — the company’s biggest of the year — Amazon is estimated to bring in sales of $44.7 billion.

Amazon, whose stock has gained more than 18 percent so far this year. Consumers are shifting their music spending from CDs and digital downloads to streaming services, providing a window for Amazon to entice users to the Echo technology as they shift to new listening styles.

The Echo can be used to play songs through various music-streaming services, including Pandora and Spotify, or to order paper towels from Amazon’s online store, and how it can be connected to various smart-home products to control lights and thermostats.

They are using music to pull you in. This is how consumers, consume. First you’re listening to rap. Next, you’re dimming the lights and ordering groceries, all on the Echo.

Amazon is without a doubt a reputable online company. Statista represents their sales from 2015. Amazon is one of the leading online business companies in the U.S. with more than 107 billion dollars in 2015 new sales.

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I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I’ve written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I’ve done a little bit of everything. For what it’s worth, I have a BA from Duke University and an MBA from Rollins College. I’m married with one daughter, and that’s worth more than everything else put together.

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