Amazon Rolls Out New Perk for Prime Members as Subscription Growth Slows

The strategic move comes during a period of fierce competition with retail rivals like Walmart.

learn more about Amanda Breen

By Amanda Breen

NurPhoto | Getty Images

Although Amazon's Prime subscription service primarily attracts members with its fast and free shipping, it boasts a range of other offerings too — and just added another to the list.

Amazon announced last week that it is broadening the free tier of its music-streaming service, Amazon Music, to include tens of millions of ad-free songs for its subscribers, per The Wall Street Journal — a move that comes during a time of fierce competition and slowing growth.

Related: 10 Movies All Entrepreneurs Should Watch on Amazon

The tech giant has stated it has more than 200 million Prime members worldwide. Annual growth in Prime subscriptions in the U.S. was once nearly 20%, but that figure is expected to slump to just 2% by 2025, according to Insider Intelligence.

The slowdown comes at a time of more subscription competition than ever before. In 2020, Walmart unveiled its membership service, giving customers free shipping on tens of thousands of items. Today, Walmart+ has an estimated 11 million members, per CNBC.

Walmart has also attempted to sweeten the bargain, throwing in a Paramount+ subscription earlier this year.

It appears Amazon is hitting back by expanding its Prime members' music catalogs.

"We continue to invest in Prime," Jamil Ghani, vice president of Amazon Prime, told WSJ. "Music is only the latest example of continued investment ... The No. 1 thing we heard from members was, 'I want more music.' So we figured out in the service, with the publishers, how to make that possible."

Related: How Amazon Prime Day Can Bring in Prime Sales for Your Business

Amazon.com, Inc. is down 48% year over year.

Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at Entrepreneur.com. She is a graduate of Barnard College and recently completed the MFA in writing at Columbia University, where she was a news fellow for the School of the Arts during the 2020-2021 academic year. 

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Business News

Amazon Is Starting to Let Customers Know What Products Are Returned Often

The e-commerce giant has begun flagging certain items that were frequently sent back.

Starting a Business

How To Sell on Etsy in 2023: A Comprehensive Guide

Want to start selling your handmade goods online? This article outlines how to start and grow your business using Etsy.

Marketing

International Marketing: How To Maximize Your Global Reach

International marketing can be a massive project and intimidating at first. Read this article to explore the ins and outs of the process and learn how to take your brand global.

Business Ideas

55 Small Business Ideas To Start Right Now

To start one of these home-based businesses, you don't need a lot of funding -- just energy, passion and the drive to succeed.