Tags: Amazon | Country | Music | Fans | Streaming | Online

FT: Amazon Seeks to Lasso Country Music Fans Into Streaming Service

Image: FT: Amazon Seeks to Lasso Country Music Fans Into Streaming Service
Gordhorne | Dreamstime.com

By    |   Wednesday, 26 Apr 2017 01:00 PM

Amazon.com Inc. reportedly plans to stampede into country music in a drive to attract older and richer listeners to its music-streaming service.

Amazon is courting the “mainstream” consumer, who it maintains has been neglected by digital music companies, the Financial Times reported.

Amazon unveiled its on-demand Amazon Music Unlimited streaming service in October, competing head-on with Spotify and Apple Music.

Amazon's on-demand music streaming service undercuts the $10-per-month pricing of rivals Spotify and Apple Music: Amazon Music Unlimited costs $7.99 per month for Prime members, while non-Prime users can sign up for $9.99 per month, Reuters reported.

In addition, Amazon offers a special tier for consumers who only want to access their music subscription on the Amazon Echo speaker for just $3.99 a month.

“For streaming to reach its full potential, it needs to be more mainstream,” Steve Boom, vice-president of Amazon Music, told the Financial Times.

Six months after its launch, Amazon is “redoubling efforts” to focus on country music, after noticing the genre’s popularity on the platform, the FT reported.

Meanwhile, massive growth in online streaming of artists such as Drake and David Bowie saw music industry revenues grow in 2016 at their fastest rate since records began, a global industry body said on Tuesday, even as physical sales fell again, Reuters reported.

The global market for recorded music grew by 5.9 percent in 2016, the quickest pace since industry body IFPI began tracking the market in 1997.

It expanded for a second straight year after losing nearly 40 percent of its revenues in the preceding 15 years, with the recovery driven by a 60 percent rise in income from streaming.

In all, digital income accounted for half of the music industry's revenue for the first time.

Total revenues for the industry were $15.7 billion in 2016, aided by 112 million users of paid music streaming subscriptions by the end of the year.

The growth in streaming more than offset a 20.5 percent decline in downloads and a 7.6 percent fall in revenue from physical sales.

"The 23 million Americans now paying for a music streaming service are dominated by younger, tech-savvy consumers, and the industry is looking to future sources of growth," the FT said.

Executives told the FT that Amazon has the potential to open up “the next big frontier” in streaming by luring Middle America.

“All the streaming services went after millennials, because millennials are the ones who paved the way [in streaming],” Cindy Mabe, president of Nashville operations for Universal Music, which is the world’s largest record label and controls about 40 per cent of the country music market, told the FT. “Amazon is the first to really say that we care about country.”

The e-commerce giant last fall announced an exclusive deal with Garth Brooks, the the best-selling solo artist in U.S. history, to stream several albums on its Amazon Music Unlimited.

The industry initially struggled with the demise of the market for physical sales, as the advent of the internet facilitated illegal downloads that crimped profits.

However, the rise of subscription-based services such as Spotify has helped it recover, even as the market for physical formats has continued to shrink and download revenues have fallen too.

"As an industry, we've had years of investment in innovation to make (growth) happen, and we're starting to see the shift ... from adapting to the digital age, to actually driving the digital age," Frances Moore, the CEO of the International Federation of the Phonographic Industry (IFPI), told reporters in London.

(Newsmax wires services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Amazon.com Inc. reportedly plans to stampede into country music in a drive to attract older and richer listeners to its music-streaming service.Amazon is courting the "mainstream" consumer, who it maintains has been neglected by digital music companies.
Amazon, Country, Music, Fans, Streaming, Online
592
2017-00-26
Wednesday, 26 Apr 2017 01:00 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved