Device manufacturers are buying up streaming services, creating an interesting angle in the formula for success in the online audio marketplace. In March HTC bought MOG, now Samsung has picked up mSpot and relaunched it as Music Hub, a music store, locker and streaming service for their Galaxy phone. The service launched in Germany, France, Spain, Italy and the UK, and is not yet available in the US.
The service will be offered in both free and premium versions to owners of the new Galaxy S3. By the looks of it, it will try to get users to replace iTunes, Spotify and other streaming services with a one stop “hub” that offers 19 million songs in its catalog. Users can preview, purchase and download songs, store them in their locker, and play them back from their device or other devices or PCs. They can also stream personalized radio channels, get recommendations, build playlists and listen on-demand if they pay the subscription price of 9.99 euros or pounds.
While there is no word on why the service is not yet available in the US, it’s easy to suspect that there are licensing negotiations going on. and on.
There’s definitely a marketplace out there among device manufacturers for comprehensive streaming services that might be struggling to monetize given their enormous “content acquisition” fees. Mobile device manufacturers know that their customers want to stream content, and they are eager to offer it in a proprietary fashion to enhance the attractiveness of their brand. Dedicated lockers with lots of songs in them create long term relationships with customers, so the cost of acquiring the content and offering the service becomes part of the expense of acquiring and retaining customers. Ads, if they decide to sell them, are gravy rather than bread and butter.