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The Zacks Analyst Blog Highlights Spotify, Apple Music, Amazon Music, Sony and Live Nation
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For Immediate Release
Chicago, IL – July 26, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Spotify (SPOT - Free Report) , Apple Music (AAPL - Free Report) , Amazon Music (AMZN - Free Report) , Sony Corp. (SONY - Free Report) and Live Nation (LYV - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Tune Into Stocks from the Global Music Industry for Huge Gains
In recent years, the global music industry has transformed into a thriving market. Revenues hit an extraordinary $26.2 billion in 2022, marking 9% year-over-year growth. This tempo is likely to continue, according to industry forecasts. The surge can be credited to the immense growth in streaming services, with platforms like Spotify, Apple Music and Amazon Music leading the symphony.
Key Players and Investment Opportunities
Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry. UMG alone made up 30% of the market in 2022. Investing in these market leaders or their parent companies — Vivendi, Access Industries, and Sony Corp. — can be a robust strategy.
The rise of music streaming has transformed the industry. As of 2022, Spotify had more than 345 million active users. Other tech giants have also entered the space, with Apple Music and Amazon Music holding significant market shares. Investing in these tech companies can offer exposure to the thriving music industry.
Plus, supplementary sectors like concert and tour promotion companies like Live Nation, music publishing entities like UMG and WMG and music tech startups are also witnessing commendable growth.
Upbeat Outlook for Global Music Industry
The share of streaming increased from 65.5% to 67% of music revenues in 2022. Subscription audio streams and ad-supported streams made up 48.3% and 18.7% share of music revenues, respectively. Performance rights accounted for 9.4% of the share. Performance rights revenues grew 8.6% in 2022, going back to the pre-pandemic levels, while income from sync grew 22.3%.
The United States, being the largest music market globally, plays a crucial role. Key drivers of this growth include the popularity of digital streaming and the resurgence of vinyl records and other physical formats.
Emerging markets offer another lucrative investment opportunity. Countries like India, China and Brazil have been witnessing a surge in demand for music content, promising lucrative returns. Global paid streaming penetration is expected to double by 2030.
Paid streaming revenues are projected to see a 10% CAGR through 2030. Music publishing revenues are expected to witness a 6% CAGR to reach $11.7 billion by 2030. Global live music bounced back 85% year over year in 2022 and topped the pre-pandemic levels. Global live music is expected to have witnessed a 4% CAGR through 2022, per the investment case offered by MUSQ Global Music Industry ETF.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Spotify, Apple Music, Amazon Music, Sony and Live Nation
For Immediate Release
Chicago, IL – July 26, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Spotify (SPOT - Free Report) , Apple Music (AAPL - Free Report) , Amazon Music (AMZN - Free Report) , Sony Corp. (SONY - Free Report) and Live Nation (LYV - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Tune Into Stocks from the Global Music Industry for Huge Gains
In recent years, the global music industry has transformed into a thriving market. Revenues hit an extraordinary $26.2 billion in 2022, marking 9% year-over-year growth. This tempo is likely to continue, according to industry forecasts. The surge can be credited to the immense growth in streaming services, with platforms like Spotify, Apple Music and Amazon Music leading the symphony.
Key Players and Investment Opportunities
Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry. UMG alone made up 30% of the market in 2022. Investing in these market leaders or their parent companies — Vivendi, Access Industries, and Sony Corp. — can be a robust strategy.
The rise of music streaming has transformed the industry. As of 2022, Spotify had more than 345 million active users. Other tech giants have also entered the space, with Apple Music and Amazon Music holding significant market shares. Investing in these tech companies can offer exposure to the thriving music industry.
Plus, supplementary sectors like concert and tour promotion companies like Live Nation, music publishing entities like UMG and WMG and music tech startups are also witnessing commendable growth.
Upbeat Outlook for Global Music Industry
The share of streaming increased from 65.5% to 67% of music revenues in 2022. Subscription audio streams and ad-supported streams made up 48.3% and 18.7% share of music revenues, respectively. Performance rights accounted for 9.4% of the share. Performance rights revenues grew 8.6% in 2022, going back to the pre-pandemic levels, while income from sync grew 22.3%.
The United States, being the largest music market globally, plays a crucial role. Key drivers of this growth include the popularity of digital streaming and the resurgence of vinyl records and other physical formats.
Emerging markets offer another lucrative investment opportunity. Countries like India, China and Brazil have been witnessing a surge in demand for music content, promising lucrative returns. Global paid streaming penetration is expected to double by 2030.
Paid streaming revenues are projected to see a 10% CAGR through 2030. Music publishing revenues are expected to witness a 6% CAGR to reach $11.7 billion by 2030. Global live music bounced back 85% year over year in 2022 and topped the pre-pandemic levels. Global live music is expected to have witnessed a 4% CAGR through 2022, per the investment case offered by MUSQ Global Music Industry ETF.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.