Amazon intensifies its counteroffensive in the market of the streaming with a “massive” extension of benefits in Amazon Music for all Amazon Prime subscribers. This was revealed this Tuesday by the company, which after having reported some 128,000 million euros in sales in the third quarter of 2022, aims to strengthen itself in a sector where it has not yet managed to overcome competitors such as Netflix and Spotify. From Jeff Bezos’s company they point out that their clients will be able to access “more than 100 million” songs that can be played without ads or additional payments, selecting the artist but not the song. In this context, Claire Imoucha, Director of the Music sector at Amazon Spain, has indicated to Five days that the measure is part of a strategy to offer its clients different services in the same place and paying a single membership.
The announcement, which has been described by the Vice President of Amazon Music, Steve Boom, as “a massive expansion”, extends the catalog of the service by more than 98 million songs and changes the landscape of music applications in the world. In Spain, for example, Spotify and Apple Music memberships in their different plans range from 9.99 euros to 16.99 euros, and their catalogs contain between 80,000 and 100,000 million songs. Likewise, a subscription to Netflix can cost between 7.99 euros and 17.99 euros. With the announced changes, the 200 million users who already pay 4.99 euros to Amazon to receive packages in a reduced time and for the video service will have a musical catalog of a similar extension without additional payments. It should be noted that, to put specific songs, you will still have to pay the additional fees of Amazon Music Unlimited, which can cost between 3.99 euros and 14.99 euros. Within the framework of the fight for streaming, the giant advances on different fronts. In September, it was reinforced with the launch on its video service of the prequel to The Lord of the Rings, valued at around 715 million dollars (about 728 million euros in exchange). However, Imoucha assures that in the company they have an eye on live broadcasts, and in this sense they have started intersectoral campaigns that blur the line between businesses that were previously clearly differentiated. This is the case of the recent collaborations with the Twitch social network, also owned by Bezos, to broadcast live concerts, or the transmission of festivals such as Primavera Sound on different platforms.
“In Spain we have invested a lot in live broadcasts, it is a field that we are interested in exploring. In addition to music, podcasts and editorial content, at an international level we have programs and live music”, Imoucha tells CincoDías. The executive also assures that in the United States it is already spreading to the sector of the sale of official products, and that they have also worked with artists such as rappers Kendrick Lamar and Maluma online with the broadcast of their concerts: “We are interested in offering more content to as many consumers as possible. If they are on Prime Video or Twitch, then we adapt the content to the profile of the user of each service.
The sector of podcast is another where Amazon’s measures may impact. The advertising business of its competitor Spotify has grown by 19% compared to the third quarter of 2022, thanks to the sale of spaces that are reproduced in the different programs, including, for example, that of the controversial Joe Rogan. On the contrary, Amazon ensures that Prime users will also be able to access all of their podcasts without ads to make themselves more attractive to users.
In June, a study by the consulting firm C+R Research published by the CNBC network indicated that US citizens spent an average of 219 dollars (about 221 euros) on subscriptions per month, although 46% paid less than 100 dollars. Similarly, the consulting firm Kantar indicated in 2021 that Spanish households spent an average of 100 euros per month on memberships. In this context, Amazon’s strategy for streaming in the face of an increasingly competitive market seems to be more in line with that of the big Chinese applications such as WeChat or Baidu, which offer multiple services such as messaging, shopping and streaming through an application. In this field it will also become a competitor to the application TikTok, which announced in July that it intended to venture into music streaming, further complicating the picture.
It should be noted that Amazon Music plays, so far, are mainly linked to the use of the Alexa device, the company’s smart speaker and virtual assistant, while those of competitors such as Spotify and Apple Music are more linked to mobile devices. Likewise, from Alexa you can also use other streaming applications to play music. In this sense, the company assures that its strategy is not focused on gaining market share in other media, but rather improving the experience of its users, especially “those who find voice interaction friendlier than interaction with screens and keyboards”.