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Amazon Music: Fastest-Growing Streaming Service?

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Amazon Music 

Amazon Music, Amazon’s (AMZN) music streaming service, is one of the services that the company bundles in its Prime membership. Since Amazon Music is tied with the Prime membership, which has a huge base in the United States, many Americans will likely use it.

According to the latest estimates by eMarketer, Amazon Music will surpass 35 million monthly listeners in the United States in 2019—17.7% growth from 2018.

The research house estimates that Amazon Music will be the fastest growing audio streaming service in the United States in 2019. However, the growth would represent a steep slowdown from Amazon Music’s 41.5% growth in 2018.

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Amazon’s ad revenues

According to eMarketer, Apple Music will be the second-fastest growing audio streaming service in 2019. Amazon Music and Apple Music can only be accessed through subscriptions. The fastest-growing pockets of audio streaming in the United States can’t be reached by advertisers, as eMarketer pointed out.

Pandora and Spotify (SPOT) still have more users in the United States compared to Amazon and Apple. However, eMarketer thinks that Pandora and Spotify’s user growth will be -0.5% and 13.9%, respectively, in 2019.

However, eMarketer expects Amazon to draw ad revenues in other ways. The research company expects Amazon’s US ad revenues to rise to $19.2 billion by 2021, which would represent more than a 2.5-fold growth from the $7.4 billion it made in 2018. The research house expects Amazon to account for as much as 11.2% of the total US digital ad spending.

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