An Alexa-enabled only device music subscription may help Amazon Music Unlimited route the competition in 2017. Yet, a new study shows dipping numbers for Spotify ahead of their IPO, and Echo users aren’t buying Music Unlimited.
Right after the holiday season, Amazon reported booming sales for Alexa-enabled devices, including the Dot and Tap. In fact, according to MusicWatch’s 15th Annual Music Survey, 14 million US consumers reported using an Echo device. Amazon also launched their Music Unlimited service late last year. However, the company has yet to report official paid subscription numbers. So, how well is the e-commerce giant’s paid subscription service faring?
Yet, only 13 percent of Echo users actually listened to Amazon Music Unlimited last year. MusicWatch’s data include paid subscriptions, trials, and account sharing. Whereas Music Unlimited only saw a 13% share, Pandora took home the grand prize. The streaming service ranked as the most-listened to streamer among Echo users with a 43% share. The numbers fall in line with a previous MusicWatch study, showing that American consumers favored Pandora over streaming video giant YouTube. iHeartRadio came in second with a 36% share, and Amazon Prime Music in third with 22%.
Amazon’s streaming service, rated here as one of the best, offers discount pricing for Echo-only and Tap-only users. However, Amazon may simply dismiss the low adoption rate as the service launched during the latter half of 2016.
However, Spotify continues to show worrying numbers. Ahead of their rumored IPO, the service only reached a 7% share of total music listening. Among Echo users, the service slightly beat out Music Unlimited. TuneIn barely edged out the e-commerce giant’s offering at just 14%. Yet, in MusicWatch’s July Monitor study, TuneIn ranked the worst in class in brand awareness among free services.
The MusicWatch Annual Music Study is based on 5,200 respondents aged 13 and older. Respondents answered questions between December 17, 2016 and January 2, 2017.