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Why Amazon VP Steve Boom just made the entire music catalog free with Prime
Decoder with Nilay Patel
Maximizing Revenue Allocation in Subscription Services
Amazon does not have a specific Excel department, but it does have a team of economists who analyze prime and subscription revenue to allocate it to various benefits. Free shipping and prime video are the top two benefits, while music is a distant third in terms of revenue allocation. When making deals like the one with Wondery, Amazon's motivation differs from Spotify's focus on increasing margins; Amazon saw an opportunity to own intellectual property (IP) and continues to distribute Wondery podcasts widely, including on Spotify and Apple.
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