French retail chain fnac jumps back into music streaming with a no-ads policy

fnac-jukebox-webrazziInternational entertainment retail chain fnac has decided to have another shot at the music streaming market, recently launching fnac jukebox that is modelled much like Spotify and Deezer. The music streaming service, online since yesterday, is available on all web and mobile platforms. However, unlike its rivals it does not offer a limited free package.

Headquartered in La Flavia, France, the entertainment retail chain offers customers three basic packages for streaming music. Monthly unlimited subscriptions cost €4.99 for web based listening, while access to the account via mobile will set the users back an additional €5 per month. The cheapest basic package available comes in at €2 per month.

Fnac Jukebox is the company’s renewed effort in the streaming market. Its first attempt ended in 2012, predominantly due to its inability to compete with Apple’s iTunes, which it ended up having to cooperate with instead. Not exactly ideal. Explaining the renewed effort, Alexandre Bompard, CEO of fnac, told Le Figaro that all the players in the music industry, including fnac, expect significant growth in music streaming in the forthcoming years. They simply cannot afford to not be a part of this explosive trend.

As of the end of 2013, there were more than 1.4 million music streaming subscribers in France, 500,000 of which buy within existing telecoms packages. Fnac also has stores in Belgium, Brazil, Italy, Morocco, Portugal, Spain and Switzerland, where it may well expand its Jukebox service within the year.

On why fnac chose to exclude the usual limited free listening option in their sales strategy, Frédérique Giavarini, Head of Strategy, said they wanted to offer music without advertising, instead introducing a highly affordable package of 200 titles for just €2 per month.

Fnac’s main rival in the market, Spotify, has a free access option where titles can be listened to randomly, interspersed with full ads in between songs.

We will soon see the tipping point for users willing to put up with ads when listening to music. Here’s hoping they have better success the second time around.

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