Amazon (AMZN - Free Report) recently took a ground breaking step in the streaming world by integrating on-demand music with live streaming.
The e-commerce giant has incorporated Twitch’s live streaming feature into its Amazon Music app. The latest move will enable the company in helping artists across all genres globally in bolstering their fan engagement.
Further, these artists will get an opportunity to expand their fan base by connecting with above 55 million customers of Amazon Music through Twitch.
The launch of Amazon Music for Artists app, which helps artists to link their Twitch channel with Amazon Music, remains major positive.
The new combination will also enable artists to connect with their fans on Amazon Music on a real-time basis.
Notably, there will be various options for the fans to explore live streaming of their favourite artists on Amazon Music app. The new Live browser page on the app thathas been designed specifically for this purpose remains noteworthy.
Move to Benefit
We believe Amazon is wellpoised to gain strong momentum among artists from superstars to emerging ones by offering them engagement with stadium-sized audiences with the help of the unique combination of Amazon Music and Twitch.
Moreover, the company is likely to witness growth in the user base of Amazon Music app by delivering enhanced live music experience.
This, in turn, is expected to strengthen Amazon’s footprint in the booming music streaming market.
Per a Statista report, the music streaming market is expected to generate revenues of $16.4 billion in 2020. The figure is expected to reach $21.3 billion by 2025 at a CAGR of 5.4% between 2020 and 2025. Further, user penetration in 2020 is expected to be 8% in 2020 and is anticipated to rise up to 12% by 2025.
Intensifying Music Streaming War
Given this upbeat scenario, not only Amazon but other companies like Spotify (SPOT - Free Report) , Alphabet’s (GOOGL - Free Report) Google, Sirius XM and Apple (AAPL - Free Report) are also leaving no stone unturned to bolster their presence in the music streaming market, thusintensifying the competition.
Spotify which is strongly focused on personalization of playlists to deliver enhanced music experience, is witnessing strong momentum across the premium subscriber base. Further, its acquisitionof Ringer remains noteworthy.
Google is making every effort to expand the global presenceof its YouTube Music service. Further, the company offers a free version of its music streaming service, which is a positive.
Meanwhile, Apple is gaining on expanding Apple Music subscriber base.
Nevertheless, Amazon’s aggressive music streaming efforts are expected to aid its competitive position against the abovementioned companies.
Along with the latest move, the version of Amazon Music featuring HD music quality and ad-supported free version of the same service are noteworthy.
Currently, Amazon 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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