Google acquired Songza to strengthen its own music services
Google (GOOGL) recently acquired Songza, which is an ad-supported music streaming service, for an undisclosed amount. Although Songza is a smaller music service when compared with Pandora (P), Spotify, or Apple (AAPL), it’s unique selling point is providing users with a customized music playlist depending on listener’s location and mood. Google already has a streaming music service called Play Music All Access, that you can subscribe for $10 a month. The company is also planning to launch a YouTube music streaming service soon. Google plans to integrate these services with Songza to make it a better recommendation service.
Google lags behind in the Internet Radio market
According to a report from Statista and the previous chart, Pandora leads the Internet Radio market with a share of 31%. Google’s All Play Access service has only 3% share in this market. In addition to Pandora, it’s behind iHeartRadio, Apple’s iTunes Radio, and Spotify in this market.
New players entering into music streaming market to leverage its growth
In addition to the previously mentioned players, a few months back Samsung (SSNLF) launched a new free music application called “Milk” for its Galaxy device users. It calls it the “next big thing” in music. Recently, Amazon (AMZN) entered the music streaming service. This service will be free for Amazon’s Prime customers. It won’t have advertisements. According to a 2013 report from Kleiner Perkins Caufield Byers, physical music sales declined 13% and digital music sales declined 6%, while streaming music consumption increased 32%. Looking at the potential of the music streaming market, it’s no wonder so many new players are trying to enter this market.