Amp: Amazon’s Struggle in the Live Audio Market

Live Audio - Amp: Amazon's Struggle in the Live Audio Market

At the height of the COVID-19 health crisis, when many of us — forced by quarantine rules and social distancing guidelines — were locked indoors and away from public spaces, Clubhouse, the audio-focused social platform, grew explosively. A platform where anyone could talk about . . . well, just about anything, Clubhouse drew millions of users seeking a reprieve from pandemic-induced isolation with live audio.

During the height of the COVID-19 pandemic, when the world was grappling with unprecedented challenges and social interactions were limited, Clubhouse emerged as a beacon of connection and communication. This audio-focused social platform offered a unique space for people to gather virtually and engage in real-time conversations about anything under the sun. With its novel approach to digital interaction, Clubhouse rapidly attracted millions of users yearning for a sense of community and companionship amidst the isolation.

Looking to replicate Clubhouse’s success, tech giants began developing their own audio-focused, radio-like products — see Twitter Spaces, Spotify Live, LinkedIn’s Audio Events and Meta’s Clubhouse competitor. Not one to be left in the dust, Amazon, too, got in the race with Amp, a platform that lets people create live “radio shows” where they can act as DJs by taking callers and playing songs from Amazon’s licensed catalog fee-free.

The resounding success of Clubhouse did not go unnoticed by the tech industry’s heavyweights. Sensing the potential of the audio-focused social space, other prominent companies like Twitter, Spotify, LinkedIn, and Meta (formerly Facebook) quickly followed suit and introduced their own audio platforms, each with unique features to attract users. Not to be outdone, Amazon ventured into the audio domain with Amp, a platform that provided users the thrilling opportunity to host live “radio shows,” taking on the role of DJs, and curating music from Amazon’s vast licensed catalog without any additional costs.

But while Amazon had grand ambitions for Amp, the app struggled to get off the ground, documents shared with TechCrunch show.

Despite Amazon’s aspirations and efforts to enter the audio market with a bang, Amp faced numerous challenges that hindered its growth and widespread adoption, as revealed in internal documents obtained by TechCrunch.

Amp, once known internally as Project Mic, was a belated entry for Amazon into the live audio market. By the time Amp launched in March 2022, Clubhouse had established its dominance, raising funds at a reported valuation of around $4 billion.

Initially referred to as “Project Mic” within Amazon, Amp’s development took longer than expected, rendering it a latecomer to the burgeoning live audio market. By the time Amp finally made its debut in March 2022, Clubhouse had already cemented its position as the frontrunner in the industry, attracting considerable investments and being valued at around $4 billion.

Amazon sought to make up for lost ground by strongly differentiating its product from rivals, providing access out the gate to a vast music catalog. Amp users, once signed in with an Amazon account, can play DJ, streaming and chatting about their favorite songs and artists to establish themselves as tastemakers. Or they can use the app to talk about anything else, like sports or pop culture, but do so while also curating a selection of music for their listeners.

Recognizing the need to distinguish itself from competitors, Amazon leveraged its colossal music catalog to give Amp a unique edge. Upon logging in with their Amazon accounts, Amp users were granted the power to don the hat of DJs, playing and discussing their favorite songs and artists, thus establishing themselves as trendsetters in the audio realm. Alternatively, users could employ the platform for a wide range of discussions, from sports to pop culture, all while curating an appealing musical backdrop for their audience.

As part of the launch in March 2022, Amazon announced a slate of Amp-exclusive shows and programs, including from artists, radio hosts, sportscasters, culture writers and personalities like Nicki Minaj (“Queen Radio”), Tefi Pessoa and Guy Raz, among others.

In a bid to create buzz around Amp’s launch, Amazon unveiled an array of exclusive shows and programs that were set to be available solely on the platform. These shows featured notable personalities from various fields, including artists, radio hosts, sportscasters, and cultural writers, offering diverse and engaging content to captivate users.

Amp launched on iOS, Amazon Alexa devices, and the web in beta, only in the U.S. to start. Amazon was targeted at over 1 million monthly active users by the end of 2022, according to internal documents — a tenth of Clubhouse’s user base at its peak.

Amp made its initial debut in beta, restricted to iOS, Amazon Alexa devices, and the web, but solely accessible to U.S. users during its preliminary stages. Amazon aimed to amass over 1 million monthly active users by the close of 2022, a modest goal compared to Clubhouse’s peak user base of millions.

But Amp never came close to achieving that milestone.

Unfortunately, Amp struggled to gain significant traction and fell far short of its target, facing numerous challenges that impeded its growth.

Amp, which had roughly 32,000 monthly active users as of the end of March 2022, was sitting just short of 200,000 monthly active users by late October. (A source tells TechCrunch that the number is hovering around 700,000 today.) The metric was previously reported by Business Insider, but TechCrunch was able to independently confirm it.

The trajectory of Amp’s user base was lackluster, with approximately 32,000 monthly active users in March 2022, rising to around 200,000 by late October. Although there has been a recent uptick in user numbers, it remains far from achieving its intended milestones.

From September 2022 to October 2022, monthly first-time iOS app installs declined precipitously from ~76,000 to ~43,000, internal documents show. And Amp encountered roadblocks on the engagement front, despite its lineup of high-profile content. Between September 2022 and October 2022, the number of hours users spent listening to Amp shows dipped 51% from a peak of around 183,000.

During the critical period between September and October 2022, Amp’s monthly first-time iOS app installs suffered a notable drop from approximately 76,000 to around 43,000, as indicated by internal data. Despite the presence of high-profile content, Amp struggled to maintain user engagement, evidenced by a significant 51% decline in the

FAQ

1. What is Amp?

Amp is an audio-focused platform by Amazon that allows users to create live “radio shows” and play songs from Amazon’s licensed catalog.

2. How does Amp differentiate from other audio-focused platforms?

Amp stands out by providing immediate access to a vast music catalog, allowing users to curate music while discussing various topics.

3. What exclusive content does Amp offer?

Amp introduced a range of exclusive shows and programs featuring artists, radio hosts, sportscasters, and culture writers.

4. Why did Amp struggle to gain traction?

Analysts attribute Amp’s challenges to poor scalability, limited monetization options, and tough competition in the live audio market.

5. Is Amp available on Android?

As of now, Amp has yet to launch on Android, despite promises of an Android client “soon” on their website.

6. What are Amazon’s plans for Amp’s future?

Amazon claims rapid growth and excitement for the product roadmap, but specific details about Amp’s future are yet to be revealed.

First reported on TechCrunch

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