Amazon Music: The Dark Horse Comes Out Of The Shadows

The 20,000 Foot View: Back in the days when online music meant online CD sales, Amazon was the king. Then, along came Apple with iTunes music store and Amazon saw the throne snatched from its hands. No sooner had Apple started to enjoy its reign that Spotify came along to usurp the throne. Now streaming’s game of thrones is experiencing another plot twist, with a resurgent Amazon battling for supremacy with an ambitious streaming music strategy that owes a considerable debt of gratitude to Apple for strategic inspiration. Throughout the emergence of the streaming market, Amazon has played the role of a dark horse, skulking on the side lines. Now, Amazon is out of the shadows, and revealing its potential to be one of streaming’s biggest players.

Key findings (Data points removed from this preview)

  • Global music subscriptions grew by X to reach X million in June 2017 from X million in December 2016
  • Since H2 2014 Spotify has largely maintained its market share, while Amazon accelerated from 14th position to third place with X million subscribers
  • Of the top six streaming subscription services, only Spotify and Deezer are ‘pure play’ services, dependent solely upon streaming for revenue
  • Amazon is ‘doing an Apple’ with its content, services and hardware ecosystem built around Prime
  • Amazon’s household device focus makes it well placed to target the over 40s demographic — a segment that has been largely left behind by streaming incumbents
  • Over 40s make up just X% of subscribers, under 40s the remaining X%
  • The battleground for home speakers will be among consumers aged X and upwards
  • Amazon Prime Music employs the Three Cs Of digital content: Context, Curation and Convenience
  • Amazon Prime penetration sits at X% in the US, X% in Germany, X% in Japan, and X% in the UK. Echo penetration in the US is X% and X% in the UK
  • Amazon is converting its addressable market better than its competitors: X% of Prime subscribers are Prime Music users
  • With peak stream approaching in many major music markets, Amazon’s targeting of more mainstream and older consumers will be crucial for driving further growth

Companies and brands mentioned in this report: Access Industries, All Access Entertainment, Amazon, Amazon Prime Music, Anghami, Apple, Apple Music, Believe Digital, Bose, Deezer, Google, iPad, iPhone, iPod, iTunes, Kakao Talk, Kobalt, Leon Entertainment, MelOn, Music Glu, Panasonic, Pandora, QQ Music, Samsung, Sirius XM, Songkick, Sonos, Sony, Spotify, Tencent, Tesla, Warner Music

Charts: 4
Pages: 13
Words: 3,429

Includes Synopsis, PDF, Slides and 2,100 datapoint consumer survey dataset