Scoop: Amazon is quietly creating a live audio business

Amazon is investing heavily in a new live audio feature similar to other live audio offerings such as Clubhouse, Twitter Spaces and Spotify’s new live audio platform, sources told Axios.

Why it’s important: As with Amazon’s efforts in podcasting and music subscriptions, the company sees live audio as a way to enhance the types of content it can offer through its voice assistant, Alexa, and its speaker products. smart.

Details: The effort, led by Amazon’s Music division, includes paying for networks of podcasts, musicians, and celebrities to use the feature for live conversations, shows, and events.

  • The idea is that users can access concerts or live performances through their Amazon Music accounts. The company is in contact with major record labels about live audio events with artists.
  • The feature is being built to focus on live music, but the tech giant is also looking at talk radio shows and podcasts as an extension of that effort, according to a source familiar with the plans.
  • Axios has previously reported that Amazon wants to invest in localized podcast content, such as news and sports. The company bought podcasting company Wondery for a reported value of $ 300 million last year.
  • Amazon also plans to integrate live audio into its Twitch live video service, according to two sources.

The overview: Live audio services exploded during the pandemic and have since seen large investments from Silicon Valley.

  • Club house He said on Sunday that users create more than 700,000 live audio rooms every day, up from 300,000 in May.
  • Spotify earlier this year it acquired Betty Labs, an app developer, and a live audio app developed by Betty Labs called Wardrobe. It has since launched Greenroom, a live social audio app focused on conversation, music and sports, and has launched a live streaming feature for concerts.
  • Twitter live audio events with entry for their Spaces feature were launched this week.
  • Facebook earlier this year it released a slew of audio products, including a live audio app that could rival Clubhouse called Audio Rooms.
  • Discord this year has launched Stage Channel, a feature for audio-only chat rooms.

Yes, but: Sources familiar with the company’s thinking claim that Amazon is not looking to create an audio social network like Clubhouse or Twitter Spaces, but a tool similar to digital radio for live broadcasts and conversations.

  • While it will likely include podcasts and spoken radio programs, the company focuses primarily on music and events for now.

Our thought bubble: The opportunity for live radio interruption is paramount, but tech companies have a lot to turn to if they want to recreate mobile radio.

  • Terrestrial radio reaches more people weekly than any other type of medium in the US, mainly thanks to cars (by Nielsen). But, as noted above, the radio business model has collapsed in the era of transmission.
  • Radio revenues fell about 25% last year during the pandemic.

Amazon has not responded to any request for comment.

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