Amazon.com Inc. (AMZN - Free Report) is going great guns with the global expansion of its music streaming service.
Recently, the company announced the expansion of its Amazon Music Unlimited service in Canada, bringing Amazon Music to more than 40 countries.
The streaming service offers customers access to millions of songs on the Amazon Music app for iOS and Android, as well as on all Echo devices.
Being part of Amazon Prime, which was launched late last year in Canada, the service also features music from famous artists, including Ariana Grande, Drake, Arkells, Shawn Mendes, Carrie Underwood and many more. In addition, it offers variety of localized programming created by Amazon Music experts.
The new subscribers will get a 90-day free trial, though for a limited period.
Coming to the price performance, Amazon has outperformed the industry it belongs to on a 12-month basis. The company’s shares have surged 110.4% compared with the industry’s growth of 43.4%.
Global Expansion Continues
Apparently, Amazon has been putting in diligent efforts to search for new markets for its Alexa-powered devices, and services like Music and Prime.
The rate at which the company is penetrating new markets makes us optimistic. It has already expanded its Amazon Music service to more than 40 countries, thereby further cementing the company’s presence in the smart speakers market.
As per a report from Markets and Markets, the global smart speaker market is expected to reach $11.8 billion by 2023, at a CAGR of 34.4%, between 2018 and 2023.
Amazon, which holds the highest share in the global smart speaker market, driven by robust features of Echo devices, is well poised to reap benefits from this space.
Amazon has been witnessing increasing demand for its Alexa-enabled devices. As a result, the e-commerce giant has been trying to make Echo more attractive for customers. In this regard, Amazon plans to come up with at least eight new devices supported by Alexa before the end of the year.
Its expansion into Canada will help the company increase the Music Unlimited user base. Consequently, its recurring revenue base will improve.
Moreover, the latest move will not only help Amazon expand its media service here, but also enable it to get a lot of user data that it can utilize to provide more customer-oriented services. This will bode well for the company’s top line over the long haul.
Currently, Amazon carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same industry include Infineon Technologies AG (IFNNY - Free Report) , IAC/InterActiveCorp (IAC - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Infineon Technologies, IAC/InterActiveCorp and Rambus is currently projected at 7.5%, 15% and 10%, respectively.
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