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Apple Reportedly Acquires Platoon to Boost Music Portfolio
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Apple (AAPL - Free Report) is strengthening its footprint in the music space. Reportedly, the iPhone maker recently acquired London-based Artists and Repertoire (A&R) and creative services company, Platoon, for an undisclosed amount.
Founded in 2016 by Saul Klein, Denzyl Feigelson and Ben Grabiner, Platoon is known to tap independent and emerging artists that it believes will make it big. Thereafter, the company will fund, distribute, and market the artists’ content, helping them reach a wider audience or even better get noticed by big labels.
Hence, Platoon’s acquisition is expected to help Apple easily identify upcoming popular artists, thereby eliminating the need to depend on labels and publishers. Additionally, Apple Music’s Up Next Platform, featuring select rising artists, is expected to get significant boost.
While Platoon will use analytics to build marketing strategies and target audiences, Apple’s recent acquisition of music analytics startup, Asaii is capable of providing detailed music data insights. Asaii’s tools and technologies will add value to Apple’s Music for Artists platform, which allows artists to understand the impact of their music across Apple Music and iTunes.
Notably, Apple’s major competitor Spotify (SPOT - Free Report) also unveiled a similar feature, which allows artists to directly upload their work on the company’s platform and see music related metrics.
Apple Partners Amazon to Boost Competitive Position
In order to fend off competition, the iPhone maker is boosting its music service reach and bringing in tools and resources for both artists as well users. Recently, Amazon (AMZN - Free Report) confirmed that Apple Music subscribers having Echo devices can enjoy Apple Music’s 50 million songs starting from the Dec 17 week.
With Amazon holding the highest market share (31.9%) in the smart speaker market in third-quarter 2018, followed by Alphabet (GOOGL - Free Report) owned Google’s share of 29.8% per Canalys, we believe Apple Music will witness increasing adoption, especially among non-Apple device users.
Competition Intensifies
Spotify is currently the dominant player in the paid, premium music streaming market boasting a user base of 191 million. The streaming giant’s premium subscriber base soared 40% year over year to close at 87 million in third-quarter 2018.
Moreover, Alphabet’s YouTube revamped its premium music offerings in June and has added millions of subscribers since then. Further, Amazon continues to globally expand its music streaming service currently servicing more than 40 countries.
However, Apple Music is witnessing increasing adoption as it continues to increasingly contribute to services revenues (15.9% of sales). Moreover, with relevant acquisitions in the music streaming space, Apple is expected to strengthen its position by offering unique and advanced features to its users.
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Image: Bigstock
Apple Reportedly Acquires Platoon to Boost Music Portfolio
Apple (AAPL - Free Report) is strengthening its footprint in the music space. Reportedly, the iPhone maker recently acquired London-based Artists and Repertoire (A&R) and creative services company, Platoon, for an undisclosed amount.
Founded in 2016 by Saul Klein, Denzyl Feigelson and Ben Grabiner, Platoon is known to tap independent and emerging artists that it believes will make it big. Thereafter, the company will fund, distribute, and market the artists’ content, helping them reach a wider audience or even better get noticed by big labels.
Hence, Platoon’s acquisition is expected to help Apple easily identify upcoming popular artists, thereby eliminating the need to depend on labels and publishers. Additionally, Apple Music’s Up Next Platform, featuring select rising artists, is expected to get significant boost.
While Platoon will use analytics to build marketing strategies and target audiences, Apple’s recent acquisition of music analytics startup, Asaii is capable of providing detailed music data insights. Asaii’s tools and technologies will add value to Apple’s Music for Artists platform, which allows artists to understand the impact of their music across Apple Music and iTunes.
Notably, Apple’s major competitor Spotify (SPOT - Free Report) also unveiled a similar feature, which allows artists to directly upload their work on the company’s platform and see music related metrics.
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
Apple Partners Amazon to Boost Competitive Position
In order to fend off competition, the iPhone maker is boosting its music service reach and bringing in tools and resources for both artists as well users. Recently, Amazon (AMZN - Free Report) confirmed that Apple Music subscribers having Echo devices can enjoy Apple Music’s 50 million songs starting from the Dec 17 week.
With Amazon holding the highest market share (31.9%) in the smart speaker market in third-quarter 2018, followed by Alphabet (GOOGL - Free Report) owned Google’s share of 29.8% per Canalys, we believe Apple Music will witness increasing adoption, especially among non-Apple device users.
Competition Intensifies
Spotify is currently the dominant player in the paid, premium music streaming market boasting a user base of 191 million. The streaming giant’s premium subscriber base soared 40% year over year to close at 87 million in third-quarter 2018.
Moreover, Alphabet’s YouTube revamped its premium music offerings in June and has added millions of subscribers since then. Further, Amazon continues to globally expand its music streaming service currently servicing more than 40 countries.
However, Apple Music is witnessing increasing adoption as it continues to increasingly contribute to services revenues (15.9% of sales). Moreover, with relevant acquisitions in the music streaming space, Apple is expected to strengthen its position by offering unique and advanced features to its users.
Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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