Music retailer HMV Canada has formally launched its new digital download and streaming service The Vault, which had been running in a beta version since December.
Similar to U.S.-based streaming audio services like Spotify, Pandora and Rdio (which also has a Canadian presence), The Vault, which formally launched Monday, provides customers with streaming access to music for a monthly charge.
The Vault currently offers subscribers access to approximately 13 million songs. Allan Mamaril, HMV’s senior manager, digital content and new media development, says it has the capacity to add anywhere from 350,000 to 500,000 songs per month, depending on licensing agreements.
New releases alone will likely result in 20,000 to 100,000 new tracks per month being added to The Vault’s music library, said Mamaril. 
Mamaril said that HMV used consumer feedback from the beta phase to improve key performance areas such as speed, content and presentation, particularly on its iOS and Android apps—which were overhauled for the launch.
He wouldn’t divulge how many users The Vault attracted in beta, but said it garnered “significant” traffic from every province, with use split almost evenly between desktop and mobile.
HMV is charging $4.99 a month for web-only access to The Vault and $9.99 per month for a web and mobile package. The streaming product is complemented by a digital download store, The Vault Store, where users can purchase individual songs and albums.
While streaming audio services are still in their infancy, Mamaril told Marketing that HMV has seen a pronounced shift in consumer appetite for such services since it began building The Vault two years ago.
“What we didn’t want is to wait for the market to exist and then jump in,” he said. “What happens then is you’re behind the 8-ball.”
According to a February report from the Media Technology Monitor, about 59% of Anglophones and 46% of Francophones indicated that they listen to streaming audio, with YouTube the most commonly cited source for seeking out music.
Canadian music historian Alan Cross said that easy access to music will drive the music industry forward in the years ahead. “I think we’re in a position right now where the more [streaming] services, the better,” he said. “We need to get Canadians familiar with and comfortable with using these services.
“The more we flood the market with choices, the faster we’ll get Canadians on board with the way things are going in the future.”
HMV plans to promote The Vault through in-store marketing including window posters. “There’s a lot of mall and high-street traffic where people are walking by every day,” said Mamaril. Online, pre-roll and banner ads will complement HMV’s Facebook and Twitter presence, he said.
Approximately 35 million people came through HMV’s 111 Canadian stores last year, said Mamaril. This gives store clerks an opportunity to inform customers about streaming services and steer them towards The Vault.
“We’re reaching and educating a consumer base that either was or is buying CDs and listening to music in a myriad of ways,” he said. “They may or may not be listening to streaming services, but HMV has the brand and the reach to help build the market.”
While The Vault is expected to appeal to a broad range of demographics, Mamaril said that the expected sweet spot for the service is adults 25-45. “They’re the people who like music, on their computer quite a bit and understand streaming,” he said.
HMV will spend the first year of The Vault focusing on trial and education, said Mamaril, with a more aggressive approach to subscription planned for the second year of operation.
