Quick Take: Amazon Music Unlimited Comes To The UK
Amazon announced the anticipated launch of Amazon Music Unlimited in the UK today. For my full take on Amazon Music Unlimited see my previous post here.
Make no mistake, Amazon are taking this launch seriously, with a coordinated PR campaign and press release quotes not only from Amazon’s head of streaming music Steve Boom but also from Jeff Bezos himself. So why the big deal? Music is a low revenue, low margin business for Amazon, just as it is for Google and Apple. But that’s not the point. Music always plays a special role for tech companies, sometimes because the CEO is passionate about music, but normally because it is the service off which other things can be hung. Amazon, like Apple, is starting the transition towards becoming a services company. While Amazon has made much more progress on video than Apple has, it has made much less progress than Netflix has. Music is the wide appeal proposition that can be used to get people onto the first rung of the services ladder. Just like the CD got people onto the first rung of Amazon’s ladder back in the 90’s.
Amazon’s approach to streaming music has thee notable assets that stand it apart from the pack:
Independent label survey Playing the volume game
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Amazon has the potential to be the sleeping giant of streaming music, but they will need to hope they haven’t napped for too long. Amazon’s pricing and existing customer relationships alone should be enough to ensure a strong degree of success. Add in the Echo and you have genuine market potential.