Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The world's most popular Internet search engine provider Google Inc.’s music service, Google Play Music recently came out with a new scan and match feature to better compete with its rivals Apple Inc. (AAPL - Analyst Report) and Amazon.com Inc. (AMZN - Analyst Report).

Google announced its digital music store, Google Music almost a year ago, debuting with millions of songs from leading music companies like EMI, Sony Music and Universal.

The new scan-and-match feature allows a user’s music to be matched in the cloud so that songs can be played on any authorized device. The service enables users to upload their music to the cloud from their respective files. The time taken for the upload depends on the amount of music that the user wishes to upload. Users can then log into Google Play to listen to the music stream through web-connected music players. A user can upload up to 20,000 songs to Music Play.

The service is similar to the ones offered by Apple (iTunes Match) and Amazon.com (Cloud Player), which allow a user’s music to be matched in the cloud. Unlike Apple or Amazon, who charge about $25 per year for their respective music services, Google’s service will be free.

According to the market research company, NPD Group, Apple accounted for 64% of U.S. music sales online, followed by Amazon at 16%, Google at 5%, and other services making up the rest. Though Google is far behind its competitors, it is trying to attract more and more users through its new ideas and features at no extra cost.

We believe that one of the key strategies for Google Music remains the expansion of its songs archive. This deal will allow users to access a greater range of content, a key factor for Google to better compete with rival music destinations like Apple's iTunes Store, Amazon, as well as streaming services such as Spotify, Deezer and Rdio.

Google has done well in the third quarter, with its gross revenue touching a record $14.10 billion. Revenues from both Google-owned and partner sites continued to grow in double digits on a year-over-year basis. Historically, Google has always fared better than Yahoo Inc (YHOO - Analyst Report), which has been struggling to uphold itself and Microsoft (MSFT - Analyst Report), which is yet to gain critical mass.

However, legal entanglements related to competitive matters or patent infringements remain an overhang. Google retains a Zacks #3 Rank (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 34.95 +13.58%
E HOUSECHINA EJ 10.88 +8.10%
ANI PHARMACE ANIP 23.13 +6.98%
CANADIAN SOL CSIQ 26.62 +5.76%
KNIGHTSBRIDG VLCCF 12.41 +4.99%