Amazon Launches New Prime Music With Little Buzz

Amazon Launches New Prime Music With Little Buzz

Amazon launches Prime Music servie

On Thursday, Amazon launched it’s new Prime Music service.  So far, it has not been able to generate a lot of hype and excitement from the user community. As a Amazon Prime member I’m excited about the addition of the new service to my current Prime subscription.  From a business standpoint, many industry “experts” are not as positive. How do industry experts and analysts feel about this music streaming service of the e-commerce giant?

Industry Experts Reaction to Amazon’s Prime Music Service

Jon Fortt, of CNBC, was asked if the addition of music streaming to Prime package was enough to move the needle and he said that it’s enough to keep the needle from moving backwards. This tells a lot of things about the brand new launched service. Fortt went on to say that the service is only good if someone wants to listen to the music of 90s.

A joke is how Gene Munster, MD of Piper Jaffray called the Prime Music service.  Munster also said that over a period of time, Amazon.com, Inc. might make it better as they have done with Prime Instant video but it’s not usable currently.  He compared it’s collection of songs with Spotify’s one and said that 1 million songs don’t stand a chance against 20 million.

In contract to Fortt and Munster, Henry Blodget, Business Insider CEO & editor-in-chief was on CNBC’s Squawk Alley recently and he was looking very positive and optimistic about the Prime package as a whole. He also said that this music streaming option with the other services makes the prime package fit well and this also fits well with Kindle.  Blodget felt that the music streaming service comes free with the Prime package of Amazon.com, Inc. and when the company would launch the rumored 3D smartphone soon, the package would be more than handy for any books lover who has interest in movies and music too. However he said that Prime Music won’t even compete with Spotify. “It’s not intended to kill anybody else and it’s not as good if you stack it up next to Spotify, but it’s just more in the Amazon product bundle giving you value for that $99 you’re paying them”, Blodget explained.

Amazon Prime (Music) Commercial

Amazon Prime Commercial with music of ‘TUID – Morning Glory’

A lot of analysts feel that the service comes nowhere near to ITunes, Pandora or Spotify.  Prime music just has got 1 million songs and lot of popular artists like Kanye, Jay-Z, Katy Perry would be missing because Amazon.com, Inc. didn’t sign an agreement with UMG and hence the company loses the fans of these popular artists already.

Munster went on saying that Amazon.com, Inc. spends so much on its services and this launch doesn’t impact its finance much so Prime Music can be seen as an extension to the Prime story and that it would become more measurable in the next few years. Munster also said that as per Piper Jaffray’s analysis Prime grows about 40% per year, which is very good and the biggest reason for most people to get Prime is the “Free 2 Day Shipping”.

So the judgment as the analysts see it is that to launch a serious music streaming service, Amazon.com, Inc. should have signed all the major music labels and without those it won’t be going anywhere. Those who already like Prime won’t abandon the service as they are getting an added benefit for free, however, it’s not going to excite a new user to register for Prime just for the music part of it.

I don’t feel that Amazon launched the Prime Music service to immediately ‘knock-out’ any of the current music streaming leaders.  I think it is another add-on to help sell Amazon Prime memberships and to keep you coming to Amazon first.  Mind-share equals wallet-share in Amazon’s bible.  Amazon.com continues to do an impressive job at dominating the consumers mind and especially wallet share.

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