JB Hi-Fi to cancel its five-year-old streaming service

After five years in operation JB Hi-Fi will shutter its subscription streaming service JB NOW Music.

According to STACK, who broke the news, the retailer has cited the streaming market’s saturation and major consolidation among existing ‘freemium’ providers as factors which determined the decision.

At one point in 2013 JB NOW Music was competing with Spotify, Sony Music Unlimited, Deezer, Samsung Music Hub, MOG, Xbox Music, Rara, Grooveshark and Guvera. Deezer and MOG shut down their Australian operations in recent years and Grooveshark was of course swiftly removed from market after it was found its operation leant heavily on copyright infringement.

As reported in TMN today, Nokia will close its streaming app MixRadio in the coming weeks.

While JB NOW Music will officially close on March 17, JB Hi-Fi CEO Richard Murray has said the company does have future plans to maximise its customers’ engagement of its music department.

“The music department is entrenched in the DNA of JB Hi-Fi and we are committed to continuing to provide the largest range of CDs and vinyl across our 180 stores nationally and on our online store,” said Murray. “Engaging with our loyal music customers outside the store is key to the ongoing success of music at JB, and the team are very excited about future plans to amplify that engagement. We thank you for your support of the service and look forward to your continued support of music at JB Hi-Fi.”   

The move away from digital is reflective of JB’s presence in the realm as only 3% of sales are through its online channel.

The company should make do, since 2005 it’s taken its $29.5 million in operating profits to $200.8 million in 2015, with its gross profit up 5.6% in 2015. Additionally, 56 of its 180 Australian stores are now JB Hi-Fi HOME stores, which sell appliances.