A merchant during the Spotify IPO at the New York Stock Exchange, April 3, 2018.
Lucas Jackson | Reuters
Spotify shares dropped 4.9% on Monday after Amazon circulated that its free music service will now be available on more devices.
Amazon Music listeners can now access the ad-supported mending on the iPhone, Android devices and on Fire TV. Previously, it was only available through the Amazon Echo. Amazon’s free music line consists of playlists and radio stations and is more similar to Pandora than to the paid version of Amazon Music, which struggles with Spotify and Apple Music.
Spotify dropped $7.25 to $140.26 at the close. Last month, the company announced that it had stimulated a surprise profit in the third quarter. In that report, Spotify said the number of premium subscribers rose 26 million in the olden times year to 113 million people at the end of September.
Spotify has 248 million monthly active users, including woman who don’t pay for premium subscriptions. The company predicted that number would grow to between 255 million and 270 million in the fourth humanity.
Amazon Prime customers get access to more than 2 million songs ad-free as part of their membership but can upgrade to Amazon Music Immense for $7.99 per month (or $9.99 for customers who don’t pay for Prime). Amazon also recently introduced Amazon Music HD, which payments $12.99 a month for Prime subscribers and $14.99 for others. It provides higher-quality music, including new 3D audio that details with the Echo Studio.
WATCH: Spotify outperforms Q3 earnings with more premium subscribers