![]() Yet Sprint is just a minority owner, and Tidal’s revenue streams probably have no impact on the mobile services company. Sprint recently invested millions into the company in exchange for a 33% stake, and nothing’s really stopping them from buying the service outright. You can sort of invest in Tidal, Jay Z’s high-quality streaming service, by investing in Sprint ( $S). There are rumors that Spotify will go public later this year, though they have yet to be confirmed by any investment banks or the company themselves. Spotify is the largest streaming music company by subscribers, but they’re still a private company. Pandora, on the other hand, is just a streaming and internet radio company, and they’ve been on a decline for over three years. It’s worth noting that Apple Music, Google Play All-Access, and Amazon Music Unlimited have a minimal impact on their companies’ respective revenue streams. Some are relatively new endeavors Pandora Premium, for instance, just launched less than a month ago and existed only as an internet radio company before that. You can invest in music streaming…kinda.Īpple Music ( $AAPL), Google Play All-Access/YouTube ( $GOOG), Amazon Music Unlimited ( $AMZN), and Pandora ( $P) are the only four major publicly traded streaming music services on the market. They might have international reach and notable, million-selling artists, but they’re as far from a publicly traded entity as can be. Smaller indie labels like Beggars Group and Merge are still owned by private owners. The company oversees everything from chemistry companies to telecommunications subsidiaries. Access isn’t just a music business, though. Access Industries, a privately owned conglomerate, purchased the label in 2011. Warner Music Group, the third major label, is surprisingly not owned by Time Warner. In fact, music is likely worth a mere fraction of the total revenue and profit made by Sony and Vivendi. These company’s parent corporations own many other subsidiaries and produce much more than music. Both are subsidiaries of major publicly traded corporations (Sony and Vivendi SA, respectively). Sony Music ( $SNE) and Universal Music Group ($VIV) are two of the three existing major labels. That begs the question: is there much of an industry left to invest in? There are three major music labels, but you can only invest in two. With this in mind, it might make perfect sense to you to invest in the music industry. Plus, there will always be ravenous music fans attending concerts and festivals, buying albums, and subscribing to streaming services. Still, $15.5 billion isn’t anything to balk at. That’s a substantial difference between two heavily publicized yet wildly different entertainment mediums. Compare that to, say, the near-$100 billion the video game industry made. music industry made approximately $15.5 billion in revenue. The music industry is also a lot smaller than any other entertainment industry. Now, listening to that album in full - and often for free - is the new norm thanks to streaming music service. Gone are the times when everyone and their mother would fork over $10 to $20 to listen to an album they’ve never actually heard before. The music industry is in a weird state these days.
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