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Sony’s Music Unlimited vs Spotify: The Battle for Streaming takes off

Inese Smidre
Posted by on May 23, 2012

Read 2 comment

Sony’s release of its Apple (iOS) compatible Music Unlimited streaming service, intended to challenge Spotify’s iPhone app, is a natural and welcome step in line with changing customer music needs and behaviours (http://www.thevalueengineers.com/2012/01/26/spotify-the-low-key-music-revolutionary/). Streaming is the future for all forms of digital entertainment, and music is leading the charge.

But I think Sony is missing a trick here. They offer two subscription packages: $3.99/month for listening to pre-determined channels (radio-style?) and $9.99 for access to Sony’s music library consisting of 15 million songs. Spotify’s catalogue has long surpassed 15 million, but more importantly, there is no clear incentive for any one customer group to switch to Music Unlimited.

As I have argued before, Spotify’s finest trick was to get people hooked in the first place by offering free music access. Here at The Value Engineers, we see time and again that consumers do not appreciate the value of technological innovation until they’ve tried it themselves. There are high barriers to adoption in place, and only a truly motivating and appealing incentive will push people to give new technology a go – and therefore fully experience the benefits that innovation offers.

Sony is not offering any such incentive. There is no free service to get customers to buy in, so Music Unlimited will struggle to convert iTunes/CD people to streaming. And for those of us who are with Spotify – well, there are no clear benefits to switching. And switching is a pain in itself.

One thing’s for sure: the Battle of Streaming has only just begun.

Sony's Music Unlimited

Category Comment, Featured Slider, Innovation, Trends on the Horizon

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2 Comments

  1. Tero says:

    Agreed. I have a huge amount of playlists that I have been building since 2008 and it would be a pain to re-build them.

    Though Sony has some music that Spotify doesn’t (Pink Floyd for example) I’d rather buy them than switch.

  2. James says:

    correct, there is no incentive to switch… however sony did offer a amazing price which I simply could not refuse, offered both to everybody and playstation plus members. ther offer was 59.99 for full year. or 11.99 for plus membmers for full year.

    both spotify and music unlimited on premium packages let you download the music for offline.

    as you can guess this was the reason I made the switch.

    Offer induced considering I was already a Playstation Plus memember and the 59.99 was pretty good the 11.99 was way better.

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