Get All Access for $5/mo

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.

By Amanda Breen Edited by Jessica Thomas

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

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.