A new report says that Amazon is growing subscribers for its music service faster than market leaders Spotify and Apple. Spotify still dominates from a subscriber number perspective, of course. But Amazon could surpass Apple Music if the current growth rates hold.
According to a report in the Financial Times that is based on Midia Research data, the Amazon Music Unlimited subscriber base jumped by 70 percent in the past year, landing Amazon in the number three spot in the industry with about 32 million subscribers. By comparison, Spotify grew its subscriber base by 25 percent last year, to about 100 million subscribers. Apple Music has about 50 million subscribers.
(A previous report stated that Amazon Music was expected to reach 35 million subscribers by the end of 2019.)
“Amazon is the dark horse [in music],” Midia Research analyst Mark Mulligan told the publication. “People don’t pay as much attention to it [as to Apple and Spotify], but it’s been hugely effective.”
Midia credits Amazon’s success to its “ubiquity” with consumers and the Alexa/Echo smart speaker technologies, which have proven popular with its customers. Amazon Music Unlimited is also less expensive than its rivals—$10 vs. $15 per month—and that price falls even further, to $8, for those with an Amazon Prime membership. Amazon also offers a super-cheap subscription, at $4 per month, for those who want to listen only via a single Echo smart speaker.
As you might expect, Amazon’s user base is older than that of its rivals as well. Amazon’s is the oldest user base, followed by Apple and then Spotify.
“We’re not battling for the same customers as everyone else,” Amazon’s Steve Boom confirmed. “For the industry to reach its full potential, we can’t just look at 15- to 22-year-olds.”
<p>This is not surprising. I believe it's mainly because of the large Echo user base. It's just so easy and convenient to just say "Alexa, play……." , and the ability to play any music you want for just $4 month is of great value to most people. Especially those who use the very popular Amazon Echo. </p>
<blockquote><em><a href="#441475">In reply to red.radar:</a></em></blockquote><p>I doubt there's any loophole in the law for non-commercial scale copyright infringement. Whether the IP owners come after you is a separate question from the legalities. </p>
<p>As I've pointed out before, growth rates between things that have significantly different base numbers, can be misleading. That's not to say that Amazon couldn't eventually dominate, but at this stage their growth rate isn't evidence that they will.</p>