Amazon
AMZN
is putting strong efforts to bolster its offerings in the booming music-streaming market.
This is evident from its latest move in which it has integrated artist merchandise into the Amazon Music app to deliver an enhanced experience to music listeners and the artist fan base.
The integration will allow subscribers of the app to shop artist merchandise, while streaming music, accessing live streams and watching music videos on the app.
Moreover, the feature will help artists boost their reach to the fan base.
Amazon has made these merchandise available on the respective artist pages in Amazon Music, wherein the songs and albums will also be displayed.
The company has already introduced products from artists namely Lady Gaga, Billie Eilish, Jack Harlow, Selena Gomez and King Princess. It has also launched exclusive offerings from Gwen Stefani, Weezer, Wale, Florida Georgia Line, Metallica, Queen Naija and Pentatonix.
Notably, Amazon has made most of these products eligible for Prime shipping.
Amazon.com, Inc. Price and Consensus
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Move to Benefit
We believe that Amazon is well-poised to gain strong momentum among artists as well as music listeners by offering them a new and enriched experience on the back of the latest move.
This, in turn, is likely to strengthen the artist base of Amazon Music and bolster its subscriber base.
This is expected to expand Amazon’s footprint in the music-streaming market that holds immense growth opportunities.
A Statista report shows that the market is expected to generate $23.1 billion in revenues for 2021 and the figure is expected to hit $33.4 billion by 2025, witnessing a CAGR of 9.7%.
Additionally, the user penetration rate in the market is likely to hit 8.3% in 2021. The figure is expected to reach 11.6% by 2025.
Amazon’s Aggressive Stance
The latest move bodes well for the company’s growing efforts in the music-streaming space.
Apart from this, Amazon recentlyentered an agreement to acquire a podcast network namely Wondery. Upon the closing of this deal, Wondery will be added to Amazon Music, which, in turn, will enhance the company’s offering in the music-streaming market. The company will be able to deliver a better listening experience, with more creators and hosts creating podcasts.
Further, the incorporation of Twitch’s live streaming feature into the Amazon Music app remains noteworthy. This has enabled the company to help artists across all genres globally in bolstering their fan engagement.
We believe all these endeavors are expected to strengthen the company’s competitive position against other companies like Apple,
Alphabet
GOOGL
,
Spotify
SPOT
and
Sirius XM
SIRI
, which are also leaving no stone unturned to expand their footprints in the music streaming market.
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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