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Amazon (AMZN) Expands in Music Streaming Market Via New Launch

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Amazon’s (AMZN - Free Report) music streaming service, Amazon Music, has introduced a new on-demand listening experience — DJ Mode — that provides customized, hosted stations with top DJs and music artists along with their personal anecdotes, all in one destination.

The Prime members and Amazon Music subscribers in the United States can check the DJ Mode platform across hip-hop, country and pop music, with insights from experts, drop-ins from top artists and music facts from Alexa.

The company has collaborated with Billie Eilish, seven-time Grammy Award winner for the first-ever artist-led DJ Mode experience, which gives fans access to her favorite songs and insights of her music.

Latest Launches in Amazon Music

Amazon Music continues to expand reach across the global market including France, Italy, Spain and India with podcasts as well as localized offerings. It provides access to more than 60 million songs with premium subscription service, Amazon Music Unlimited.

Apart from the recent launch, the company announced that Amazon Music HD — its high-quality streaming tier — is available to all Amazon Music Unlimited subscribers without any additional charges.

In addition, Amazon Music launched a new shopping experience with the integration of artist merchandise within its mobile app. Customers can listen to new music, watch live streams and shop a genre-spanning selection of merchandise from artists including Billie Eilish, Jack Harlow, King Princess, Lady Gaga as well as Gucci Mane.

Growing and Competitive Music Streaming Market

The music streaming industry has seen a significant rise due to increase in mobile advertisement spending, use of mobile apps, rise in the number of subscription services and users’ accessibility to local content on the music streaming platforms.

According to a report by Allied Market Research, the online music streaming industry is expected to reach $24.7 billion by 2027, progressing at a CAGR of 9.8% between 2021 and 2027.

In addition, a report by ResearchAndMarkets.com reveals that the global music streaming market is expected to hit $7.5 billion by 2025, witnessing a CAGR of 19% during the forecast period of 2021-2025.

Thus, the latest move by Amazon Music bodes well to strengthen its presence in the booming music streaming market backed by the abovementioned factors.

Further, Amazon’s presence has intensified competition in the music streaming market against other players including Apple Music (AAPL - Free Report) , Spotify (SPOT - Free Report) and Alphabet’s (GOOGL - Free Report) Google-owned YouTube Music, Tidal, Deezer, Qobuz as well as Pandora Premium.

Spotify is a pioneer in music streaming with more than 356 million users. It offers more than 70 million tracks and 2.6 million podcast titles. Recently, it launched Only You, a global campaign experience with customized playlists within the app.

In addition, Apple Music has 72 million subscribers as of June 2020 and offers more than 75 million songs. The company is gaining momentum across the listeners with its launches - mono, stereo and Spatial Audio.

Moreover, YouTube Music has 30 million music and premium subscribers globally, which provides more than 60 million songs.

Nevertheless, Amazon’s growing subscriber base driven by innovative launches is likely to continue boosting its competitive position.

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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