Wednesday, 17 July, 2019

Amazon Music Unlimited is growing faster than market leaders Spotify and Apple

Amazon Music has grown by more than 70% in the past year Amazon Music Growth Outpaces Spotify, Apple Music
Emmett Howard | 14 July, 2019, 02:12

Spotify and Apple Music are the two music streaming services that tend to get the lion's share of attention - partly because of the obvious fact that they also have the lion's share of paying subscribers and arguably a better product than alternatives.

Instead of targeting younger demographics who have already become loyal to either Spotify or Apple Music, they're headed for an older market. And it's not resting on its laurels, now offering four months for 0.99p ahead of Amazon Prime Day.

Amazon Music Unlimited was the fastest-growing music service over the last year according to new data that shows its subscriber base grew by 70%, even though it launched a year after Apple Music. And while that is dwarfed by Spotify's subscriber base of 100 million, Spotify's growth is reported to be much lower at about 25% a year.

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It seems that Amazon's growth is greatly accelerated by its smart speakers. Although relatively late to music streaming - Amazon Music debuted only in autumn 2016 - it appears the e-commerce giant is succeeding partly because of its brand recognition.

Spotify and Apple Music are facing increasingly tougher competition from Amazon when it comes to adding new paid subscribers to their services. That's especially true if you have Amazon Prime (it's only $8 per month for Prime subscribers) or if you only use an Amazon smart speaker to listen ($4 per month), which may also help the service grow. But Amazon could surpass Apple Music if the current growth rates hold.

Commenting on the story, Amazon Music VP Steve Boom said, "We're not battling for the same customers as everyone else".

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