Now comes news that services from YouTube and Amazon are launching.
The recent talk about YouTube's service has mostly focused on parent company Google's treatment of Indie labels and their licensing deals. Setting that aside for a moment, a paid streaming service from YouTube represents a way to leverage the enormous user base of what was originally a free video streaming service that has become a go-to music discovery platform. Though details of the new service are still emerging, being able to monetize all those subscribers through a paid, ad-free service will be a tremendous step forward for YouTube.
The other new service, from Amazon, was just quietly launched. Amazon Prime Music, available only in the US, offers "unlimited, ad-free streaming" of "over a million songs and hundreds of playlists." Because Amazon is advertising Prime Music as a free service, I might say that it is just another way for Amazon to increase membership in its existing Prime service by marketing the added value of streaming music. While the basic offering sounds pretty standard, what is even more interesting is how Amazon is partnering with other services, namely iHeartRadio, to provide further incentives to their users.
In addition, Amazon has introduced the Fire Phone, making both Amazon product launches much more significant. Consumers may not automatically switch to an Amazon streaming service if they already use one of the others. However, that chance multiplies when the Fire Phone and Prime Music are used together. And this synergy represents what Amazon does best: leveraging the company's scale.
Once associated solely with books, Amazon has continually developed new products and services. That strategy is now being applied to streaming music. As I wrote earlier about Apple buying Beats Music to keep iPhone users from leaving the company for another service, it would appear Amazon is attempting to do the same.
Amazon and Google both know their users, and their ability to serve streaming music to them means that expectations for what constitutes a streaming service will continue to grow. This expectation will further shape competition and encourage the other services to change their offerings and thereby strengthen the overall streaming business. In addition, Amazon's strategy of using Prime in conjunction with other services means they can build out without being a direct competitor, taking a little pressure off them while still allowing their business to grow.
A couple of new streaming services will only serve to increase competition and consumer choice. Both are good things in the continued growth of the streaming marketplace.