Amazon (NASDAQ: AMZN) has most recently announced that it would like to purchase the American podcast network, Wondery, to join forces with Amazon Music. This particular collaboration aims to make stronger competition with other companies music and podcast streaming platforms operated by rivals like Spotify (NYSE: SPOT) and Apple (NASDAQ: AAPL). Although Amazon already makes for fair competition in the world of music, they are looking to add to their repertoire to allow listeners to access a much wider variety of options.
Wondery, although a newer podcast company, is predicted to make a potent combination with Amazon. Some of its well-known podcasts are "Dirty Death," "Dr. John," "Business Wars," and "The Shrink Next Door." Wondery will provide a variety of experiences for listeners and looks to aid Amazon in expanding its podcast offerings.
The financial terms remain undisclosed for the Wondery deal, the Wall Street Journal recently reported that Amazon's bid for Wondery would value the company at around $300 million, up from the company's $100 million valuation in 2019. Even when the deal with Amazon comes to an end, the company will nevertheless be able to offer experiences to listeners that will be both exciting and entertaining.
As far as other forms of music streaming and entertainment platforms are concerned, Spotify remains one of Amazon's top competitors. In comparison to Spotify, Amazon can be used for free, while Spotify offers a free tier with advertisements and a commercial-free premium tier for $9.99 per month. However, Amazon does not allow its users to listen to songs on-demand for free. Still, Spotify allows its users to listen to the songs for free when utilizing the desktop application, although there are countless disruptions caused by ads.
Amazon has many other features that Spotify may not offer, such as different plan levels (free; included with prime; unlimited; HD; and echo). Though both Spotify and Amazon have their similarities and differences in streaming services, Amazon's partnership with Wondery will prove to challenge Spotify and many other podcast producers. Amazon and Wondery make a strong team that is both impressionable and will cause listeners to want to continue listening even after the deal ends.