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Summary
- The music-streaming space is likely to generate about US$23.1 billion this year, and it may reach around US$33.4 billion by 2025.
- Apple Music may add the HiFi audio streaming layer to its Apple Airpods 3.
- Shopify’s recent collaboration with Facebook allowed users to play music and podcasts directly from iPhone and android applications.
Music stocks have been in the spotlight of late. Their fast revenue growth with widening subscribers’ base has drawn the attention of investors in recent times.
The apparent enthusiasm for music stocks may be due to the growing popularity of audio-video music streaming services and podcasts among the masses, mainly the millennial crowd.
We explore here two music stocks to understand how their growth trajectory had been.
Source: Pixabay.
Also Read: FuboTV Shares Rise On Record Q1 Revenue Growth
Apple (NASDAQ:AAPL)
Apple offers superior sound quality to its music subscribers. Its spatial audio technology from Dolby Laboratories gives an immersive, surround-sound experience to listeners.
Apple Music offers access to more than 75 million songs to subscribers.
Its new features will be available from June with no extra charge. Apple may add the HiFi audio streaming layer to its Apple Airpods 3. It allows users to follow songs from a particular record label.
Apple’s playlist, dubbed City Charts, lists the top 25 songs from more than 100 cities across the globe. The music-streaming space is likely to generate about US$23.1 billion this year, and it is expected to reach around US$33.4 billion by 2025.
Apple Inc.’s market cap is around US$2.2 trillion.
In Q2 of 2021, its product sales surged over 60% to US$72.68 billion.
Apple stock was trading at US$124.28 at the market close on Tuesday, June 1.
Also Read: AT&T To Combine WarnerMedia With Discovery In US$43B Deal
Spotify Technology (NYSE:SPOT)
Shopify’s collaboration with Facebook allowed listeners to play music and podcasts directly from iPhone and android applications. Paid subscribers would also get ad-free music.
Shopify’s ad marketplace connects advertisers to listeners across its Audience Network. It allows advertisers to buy rights to specific audiences using its SAI technology.
Shopify has a market cap of around US$44.526 billion.
Shopify’s Q1 2021 revenue rose 16% to around EUR2,147 million. It had about 2.6 million podcasts on its platform at the end of Q1.
Shopify acquired Betty Labs, a live audio application, on March 29, 2021. The stock was trading at US$241.73 at the market close on June 1. It gained around 31% in the last one year.
