Subscription News Updates: Amazon, Microsoft and Facebook

This week Amazon Music Unlimited matches its streaming music competitors by offering a family plan with comparable benefits and pricing, Microsoft tries to smooth

Subscription News Updates: Amazon

Amazon: A month after launching Music Unlimited, its new streaming service plan, Amazon has added family subscription plans, allowing multiple people within one household to share a Music Unlimited subscription, reports Slash Gear. Under the family plan, six users can access Music Unlimited for $14.99 a month for Prime and non-Prime subscribers. Prime members also have the option to purchase an annual subscription for $149 a year, a $30 savings.

Competitors Spotify, Google Play Music and Apple Music also offer family plans, allowing six users to access the subscription for $14.99 a month. Amazon has two advantages over the competition: it has access to a Prime-friendly audience, and it offers a $3.99 a month plan for Echo, Echo Dot and Amazon Tap users for use with voice-powered Alexa.  

 

 Microsoft and Facebook

Microsoft: Remember that $26 billion acquisition of LinkedIn Microsoft initiated this summer? Though the deal got the nod from regulators in the U.S., Canada and Brazil, the European Union has not yet approved the acquisition, and Microsoft has hit a snag. In September, Salesforce voiced antitrust concerns to the EU, and it looks like they’re listening.

On Wednesday, Reuters reported that the EU competition enforcer noted concerns about the deal following a meeting with Microsoft executives last week, and Microsoft has offered concessions to smooth things over. According to Reuters, the Commission will likely seek input from competitors and customers before determining its next move. The Commission could also request more concessions or open a full investigation before making a ruling. It is expected to make a ruling on December 6.

 

Subscription News Updates: Amazon

Facebook: Mark Zuckerberg has had a rough couple of months. Between fake news, accusations of possible election influence and overinflated video view times, Zuckerberg and Facebook have a lot to answer for. One metric, which measures how many people see a publisher’s content on its business page, may drop by an average of 33 percent per week or 55 percent per month, reports Recode.

Of particular concern to publishers is the miscalculation of metrics for average time spent on Instant Articles. Facebook admits to over-reporting traffic by an average of 7 to 8 percent since August 2015. Facebook reports it has corrected the issue.

Facebook says the new numbers should have no effect on the results advertisers have paid for, including the number of clicks or impressions. It also says that it has been correctly measuring key metrics such as how many people could see a publisher’s page each day, how individual posts have performed and the anticipated results when publishers pay for more exposure.

To prevent future bungled metrics, Facebook is revising its metrics and reporting policy and working with third-party partners like Moat, IAS, comScore and Nielsen for external data and verification, meant to instill confidence in publishers and advertisers. It is also clarifying metrics including calculations, so they better reflect how advertisers are using Facebook’s various products.

Insider Take:

It is always interesting to see how these multi-billion-dollar companies handle product launches and snafus. In the case of Amazon, it is not a surprise that they jumped on the family subscription plan bandwagon. To gain its market share of the streaming music market, Amazon needs to be able to match – or beat – its competitors’ features and benefits.

Who knows what will happen with Microsoft and the EU, but because this deal is so valuable to them in terms of getting access to data and a built-in audience with recurring revenue, it is likely that Microsoft will do whatever is necessary to seal the deal.

As for Facebook, well, it will still be one of the most popular social media platforms, but it is losing credibility with consumers as well as businesses. This is particularly concerning for publishers who have agreed to try Instant Articles on an experimental basis. With the miscalculations and delayed response, it is no wonder that some big publishers like Bloomberg Media, the Financial Times and the Wall Street Journal have held out thus far.

 

 

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