Recently, the web giant Amazon.com, added music to its
Prime bundle service. This was a bold
marketing move that adds even more strength to its expanding service. To better understand what Amazon is doing as
a company, first understanding what Amazon Prime is, and second, realizing how
adding music will create more value for current members is important.
Amazon Prime is a service that generally costs $99 a year
and as little as $40 a year for college students. After becoming a member, Prime users can then
get free two-day shipping on millions of items, video streaming services,
e-book rentals, and now over one million different songs to listen to. Amazon Prime continues to be a successful
marketing strategy and not only pulls in new customers, but also keeps them
locked in for good (Perez, 2014).
Adding music creates more value for Prime users by
allowing them to access all of their favorite media through one platform. One Prime membership could potentially allow
someone to cancel his or her Spotify and Netflix accounts, saving him or her over
$100 per year. When breaking down the
cost of Prime by month, it is only $8.25 for a general account. Prime beats the monthly price of Netflix and
Spotify, while still giving users countless hours of media to enjoy (Pepitone,
2014).
Overall, Amazon Prime is a major strength for the company
because it allows users to get free two-day shipping and a variety of streaming
options, and with the addition of music, Prime is arguably the best value out
there right now when it comes to streaming services. I think Prime has really strengthened the
company as a whole, and as a marketer, I know a lot can be learned by watching
what Amazon does next with Prime.
References
Parez, S. (2014, July 23). Tech Crunch.
Retrieved October 12, 2014, from Techcrunch.com:
http://techcrunch.com/2014/07/23/amazon-expands-prime-music-catalog-by-hundreds-of-thousands-of-songs/
Pepitone, J. (2014, June 12). NBC News.
Retrieved October 12, 2014, from NBCnews.com: http://www.nbcnews.com/tech/tech-news/amazon-prime-music-isnt-spotify-killer-it-doesnt-want-be-n129586
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