Amazon Music was created in 2014 as an exclusive service for Prime subscribers and became a standalone service in 2016. In the US, it costs $10 per month on its own, and $8 for those who already own Prime.
Amazon claims that the service has tens of millions of users, but does not disclose more precise numbers. According to market estimates, the service has at least 220 million subscribers.
This would be behind competitors such as Spotify, which has 380 million users, and Apple Music, with an estimated 200 million. At the same time, it is ahead of Deezer, which is also well known and has about 92 million users.
If, on the one hand, streaming services have solved much of the problem posed by music piracy, on the other hand, those responsible for the songs continue to make little money when the cost is divided by playback. This is such a controversial topic in the industry that industry leader Spotify tries to avoid the topic whenever possible, but estimates indicate the amount paid by the largest provider of this type of service in the range of $0.003 to $0.005. for each received game by content.
Amazon Music opened up the game and guaranteed a payout of $0.01 per song played, about double that of its main competitor. Even paying more, it’s important to keep in mind that one has a much higher follower count than the other.
All of this is divided into 220 million users who pay some kind of premium plan and the rest listen for free, but still generate revenue for the streaming service through ads. Given the same subscriber-only business model, Spotify has more than twice as many people actively spending money each month on the platform, so in theory, paying less eventually translates into more streams.
Taking into account the total number of users and rounding up the numbers, for every six people streaming music on just those two options, five are on Spotify and only one is watching the same content on Amazon Music.
As encouraging as it may seem, it should be remembered that the artist responsible for the music does not receive the full amount, and this applies to this music streaming service, this applies to Apple Music, Spotify and almost any competitor, except for the duo such as Deezer, Tidal and YouTube Music.
A significant portion of the amount goes to the company that owns the rights to the music, with a small portion going to the musician – or musicians in the plural. In the case of Amazon Music, record companies get 52% of that cent on the dollar.
But royalty payments from a streaming service also largely depend on what percentage of paid and free users listened to a given musical composition, as well as on the country in which this content was listened to. The fact is that the cost of a subscription is the same in different countries of the world, but the cost of advertising in the free version is significantly different. The more expensive advertising costs, the more profitable the work of the streaming service is, and the greater part of the profits can be directed to payments to artists.