Samsung Milk Music US team hit by layoffs

Samsung’s subsidiary responsible for the Milk Music service - Media Solutions Center America - has been hit by layoffs, Variety reports. 

Samsung reported a drop in profit of 39% in its latest quarterly earnings and in spite of that being mostly caused by a slowdown in handset sales it would make sense for the corporation to trim some fat and cut back expenses in non-essential areas. 

The report states that ‘dozens of staffers’ are being let go - and, whilst the company states that its commitment to Milk is unwavering, the sheer number of people laid off begs the question of how this will affect the company’s content strategy going forwards. 

Although Milk Music does have a premium option, its primary function always appeared to be that of keeping Samsung users loyal to the brand since the app is only available to them. 

Now Samsung may be re-evaluating the value and the impact of Milk to its overall strategy. Given the sheer number of streaming services now on the market, how many of Samsung’s users really listen to music key on a regular basis? Regardless of very healthy install numbers, continued engagement with the app is the only reason why Samsung would want to keep Milk Music around.

(Andrea Leonelli)