After 10 months in a kind of public stealth launch mode, the unlimited music service spun out from the vendor Omnifone will soon be launching properly, with a marketing campaign and its first apps. Rara is:
- launching on iOS, Android and Windows 8.
- upping its catalogue from 10 million to 18 million tracks with new indie signings from Merlin, The Orchard, VidZone, INgrooves Fontana and Believe Digital.
- gaining bundled carriage on Lenovo Windows PCs, tablets and Android devices.
- upping its availability from 20 to 27 countries.
To anyone who has watched Rara’s activity – or, rather, lack of – since it was spun out in December 2011 so Omnifone could concentrate on being a B2B vendor, knowledge that Rara already operates in 20 countries is surprising. The company has few subscribers so far, if its reluctance to disclose user count is anything to go by.
That will major on actually marketing the service in six countries – the US, UK, Sweden, Germany, Spain and Australia. But the campaign will be online-only, comprising networked display ads, Facebook ads, search engine marketing and affiliate partners.
As MP3 downloads slow down, music subscription is a segment ripe for business by several players. But it is also one increasingly dominated by its darling Spotify. Rara, launching substantially later, will have its work cut out making any headway.
Massey suggests Rara’s differentiation lays in Omnifone’s office location, the HQ of a record label.
But Rara faces big challenges, and some of the differentiators Massey spotlights are also professed by Spotify’s many other challenges.
What is different is that, unlike Spotify and some rivals, Rara will not use the freemium model to pick up users for conversion to its premium service (£4.99 on desktop, £9.99 for mobile).
Instead, all users must pay from the outset – £0.99 or $0.99 for a three-month opening period before the full-price requirement kicks in. In this model, Massey claims to avoid some of the business model questions that have fallen on its more popular rivals.
That approach may make Rara more sustainable than Spotify, and requiring payment from everyone may give it better conversion rates. But it may also discourage younger listeners and other refuseniks who simply won’t ever discover the service.