A new report says that Amazon is increasing the number of subscribers to its music service faster than market leaders, Spotify and Apple. Spotify still dominates from the point of view of the subscriber number, of course. But Amazon could surpass Apple Music if current growth rates are maintained.
According to a Financial Times report based on data from Midia Research, the number of Amazon Music Unlimited subscribers jumped 70% over the past year, propelling Amazon into the third largest sector with about 32 million subscribers. In comparison, Spotify increased its subscriber base by 25% last year, reaching approximately 100 million subscribers. Apple Music has about 50 million subscribers.
(A previous report indicated that Amazon Music is expected to reach 35 million subscribers by the end of 2019.)
"Amazon is the black horse [in music]", Said to the publication Mark Mulligan, analyst at Midia Research. "People do not pay as much attention to it [as to Apple and Spotify]but it's extremely effective. "
Midia attributes Amazon's success to its "ubiquity" with consumers and the Alexa / Echo smart speaker technologies, which have proven popular with customers. Amazon Music Unlimited is also cheaper than its competitors – 10 USD versus 15 USD per month – and this price drops further to 8 USD for Amazon Premium subscribers. Amazon also offers a very inexpensive subscription, at $ 4 per month, for those who wish to listen only via a single Echo smart speaker.
As could be expected, Amazon's user base is also older than that of its competitors. The Amazon user base is the oldest, followed by Apple, then Spotify.
"We are not fighting for the same customers as everyone else," confirmed Steve Boom of Amazon. "For the sector to reach its full potential, we can not limit ourselves to 15-22 year olds."
Tagged Amazon Music, Amazon Music Unlimited, Amazon Prime, Apple Music