Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, June 13, 2014

Article Excerpt

AMAZON.COM INC., $326.27, symbol AMZN on Nasdaq, has launched Prime Music, a music-streaming service that’s now bundled with a $99-a-year Amazon Prime subscription. This is the fourth part of the Amazon Prime service. The other three are unlimited shipping, a Kindle e-book library and Prime Instant Video (streaming movies and TV shows). Amazon’s music service will start off with just over a million songs, with no ads and no limit on how much users can listen. It will also offer playlists curated by music experts Amazon will hire. Prime Music’s library is relatively small compared to competing services, particularly Spotify, which offers over 20 million songs, though licensing restrictions mean availability varies by country. Amazon will use Prime Music to promote its Amazon Prime service. The company benefits from Prime because members are much more likely to buy goods on Amazon.com without bothering to check other retailers. As well, Prime customers spend three to four times more than regular Amazon shoppers. Amazon.com is still a..