Rumor Fact(ory): Samsung aims for Milk money

Last month we reported the start of Milk Music, Samsung‘s service targeted to Samsung phone users only. Milk Music launched with the most streamlined possible sign-up process: None. Apparently intended as an alternative to Pandora for Samsung device users, the new feature was distinguished by free listening without ads. (Pandora gives you a choice of ads, or $5/month premium service without ads.)

milk music infographic 300wNow, a captured (leaked?) screenshot of a Samsung internal marketing graphic indicates that the ground is being laid for Milk’s next stage, in which it introduces the usual ad/premium double-tiered plan.

Notable is the pricing: $4 a month, 20% less than Pandora. That might not seem like a powerful inducement, but it does offer a competitive push-back against Pandora’s recent 25% price hike (from $4 to $5, plus other changes), which received lots of publicity. Part of the buzz around Pandora’s maneuver resulted from P’s outright blaming of high music royalty costs.

This isn’t Samsung’s only foray into music. Just one week ago the tech company announced a partnership with Paris-based Deezer, an on-demand music service, giving Samsung customers six months of free premium service as a trial.

One way or another, Samsung apparently intends to provide low-priced music to its customers, and keep them ensconced in the Samsung ecosystem.

Brad Hill