Today, Rhapsody announced the ability for AT&T users to pay for the popular on-demand service on their wireless bill. The announcement follows a similar agreement between Rhapsody and Verizon and means that Rhapsody now has the ability to offer wireless carrier billing to more than half of all mobile phone users in the US.
“For our subscribers, it’s all about convenience,” said Jon Irwin, president, Rhapsody. “For the companies we work with, it’s another example of the value that a relationship with Rhapsody can add: customer convenience, higher ARPU and increased stickiness to their wireless carrier.”
It’s also evidence that smartphone users are coming to see subscription music as synonymous with their mobile experience.
Consider that in 2012:
- 51% of all tracks played on Rhapsody were mobile, up from 27% in 2011
- 56% of Rhapsody subscribers listen on mobile, up from 38% in 2011
- The number of days per user that Rhapsody subscribers used the service on mobile was up 25% from 2011
- 42% percent of Rhapsody customers ONLY use mobile
These trends are expected to continue, and through agreements like the one announced today, Rhapsody is competitively positioned to take advantage of them.
“In addition to offering value, we have a lot to gain by working with carriers,” said Irwin. “We’ve always believed in a pursuing a sustainable business that benefits both the people listening to all the great music we offer, and the artists who are creating it. These billing agreements reduce churn on our end and expand the Rhapsody community without giving away music for free, which is important to us.”