You’re a late arrival to the streaming music space. Spotify is the market leader, and Apple and Google have so far failed to dethrone it. How do you hope to compete?
Jeff Bezos: Well, here’s what I would say: We’ve been in the music category since 1998. It was the second category we launched after books. Our customers listen to a lot of music and we have a couple of freight trains kind of pulling the business along. One is Prime, and the other is Echo and Alexa.
Steve Boom: We don’t wake up thinking, “How do we beat Spotify?” We think about the opportunity in front of us, and we think there’s room for multiple winners. Obviously we’re big into families, and our age demographic is different than the other services. It tends to skew a little bit older. Because it’s a household device, our goal is to get everyone up into the family plan, ultimately.
You’re known for your obsessive focus on the customer. Where do you see that Amazon DNA in this product?
Bezos: Oh, everywhere. It’s one of the most customer-centric things we’ve ever done — the ability of natural language to control your music right into your kitchen or bedroom. It’s the perfect marriage between high tech — Alexa and Echo — and this thing that people everywhere love, which is music.
Boom: If you’re asking people to pay for streaming music in a world where there are a lot of free alternatives, then you need to build a service that they want to use every day. And that’s one of the beauties of this device. What we are seeing is that people are listening to more music than ever: we see from data, and we hear anecdotally from customers. Since I have the Echo in my kitchen, my living room, my bedroom, the kids’ room, we’re listening to more music than we were listening to in the past.
Jeff, how wired is your house?