Billboard - USA (2019-09-28)

(Antfer) #1

Alexa, Take Center Stage


As smart speakers become ubiquitous and teens get hooked, new studies show how users


are engaging with music through the devices — and how the music business can take advantage


BY MICAH SINGLETON


IVE YEARS AGO,


when Amazon first intro-


duced its voice- activated


Echo smart speaker, it was


advertised as a product that could


make a grocery shopping list, tell


users the weather — and play music


from Prime Music or iHeartRadio.


But as the smart speaker market


grows, music is becoming the focus


for device owners.


Music engagement through smart


speakers has grown overall: Earlier


this year, the Smart Audio Report


from NPR and Edison Research


stated that 77% of U.S. smart speaker


owners use them to play music every


week. This year, 17% of U.S. music


listeners say they play music through


smart speakers in a given week, up


from 15% last year, according to Niel-


sen Music’s new 360 2019 U.S. report,


provided exclusively to Billboard.


The biggest growth has been among


Gen Z music listeners, as usage


among teens jumped from 9% in 2018


to 20% this year, a 122% increase,


according to the Nielsen study.


In April, tech analysis firm


Canalys said it expects the global


install base for smart speakers to


pass 200 million devices by the end


of 2019. Since Amazon kicked off


the smart speaker arms race, Google


launched a line of Home speakers in


2016, Apple started selling its Home-


Pod last year, Facebook debuted its


Portal device last October and earlier


this year Sonos added Google Assis-


tant to its home audio speakers to go


with Alexa, which became available


on the platform in 2017.


The smart speaker takeover has


some wondering what the stream-


ing business could look like once


it shifts further away from people


typing search terms into query boxes


and more toward voice-operated


speakers. “This whole topic is less


about devices and more about just a


gigantic, tectonic shift from text as a


motor of interactivity to voice,” says


Larry Miller, director of the music


business program at NYU


Steinhardt. “Over the next


several years, it’s going to


be much less about talking


to or talking at or interact-


ing with your Amazon or


Google device than talking


to the voice-based operat-


ing system that interacts


with your life. This is a shift


in the way that we fundamentally ask


for the information and entertain-


ment that we want, and in music this


is a critical issue.”


As smart speaker adoption contin-


ues to explode and music streaming


on such devices takes on a bigger


role, particularly among younger


listeners, the music business has


worked to adapt to the model. That


has meant streamlining metadata,


addressing fluctuations


in user behavior and


creating hyperpersonal-


ized playlists.


Smart speakers are also


playing an increasing role


in how music listeners


discover new artists


and songs, with 61% of


owners saying that new


Market


122%


YEAR-OVER-YEAR


INCREASE IN


TEENAGE MUSIC


LISTENERS USING


SMART SPEAKERS


TO PLAY MUSIC


ILLUSTRATION BY RYAN SNOOK SEPTEMBER 28, 2019 • WWW.BILLBOARD.COM 1 7


● Motown Records founder BERRY GORDY announced his retirement ahead of his 90th birthday. ● The Latin Recording Academy appointed MANUEL ABUD COO.


F


PG. 22 THE HI-RES AUDIO MARKET PG. 26 THE QUEST FOR A CHINESE POP STAR PG. 28 RESERVOIR CEO Q&A

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