AlphabetGoogle’s GOOGL division is boosting its presence in the music streaming market with a feature update to YouTube Music.
Apparently, the company is testing a feature called Recommended Radios, which offers 10 radios with a waveform cover style featuring the YouTube Music logo.
Radio stations are named either by unique band or genre, by decade, or by other descriptions. Users can see the preview of other artists listed below on the screen.
The new feature comes with the “Add to Library” option. Users can download songs for offline listening.
Notably, a few users have already seen the Recommended Radios feature, but it hasn’t been widely launched yet.
Google’s latest move bodes well for delivering an improved music streaming experience to users.
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Growth of the music streaming market
The latest move bodes well for the company’s growing music streaming efforts.
Apart from the latest decision, Google recently introduced features and improvements in YouTube Music search algorithms. It unveiled a family shelf, namely “For the family”, to provide a unique family listening experience. Additionally, it rolled out the Listen Again shelf for smart TVs and game consoles, which show an increased number of results.
The company rolled out the snooze feature in YouTube Music during casting sessions. The feature allows users to repeat entire albums, playlists, and individual songs.
With the growing efforts, Google remains well positioned to rapidly penetrate the booming global music streaming market.
Uninterrupted access to high-quality audio files, without the need for downloads that typically consume time and memory on the phone, is a key enabler.
The increasing proliferation of smartphones and the rapid adoption of AI-based smart speakers are driving the demand for music streaming services.
According to a report by Grand View Research, the global music streaming market is expected to grow at a CAGR of 14.7% between 2022 and 2030.
According to a report by Statista, the market is expected to generate $26.6 billion in revenue in 2022, which is expected to reach $36.3 billion by 2026, growing at a CAGR of 8.1% between 2022 and 2026.
Additionally, user penetration in the highlighted market is expected to reach 9.4% in 2022 and 12.2% by 2026.
We believe Google’s growing momentum in such a market is likely to help Alphabet gain investor confidence in the near term.
Notably, Alphabet shares are down 26.1% year-to-date.
Given the optimistic scenario, not only Alphabet but other companies like Amazon AMZN, Apple AAPL and Spotify SPOT is making significant efforts to capitalize on the aforementioned insights.
Apple is continuously gaining momentum in the highlighted market with the expansion of the Apple Music subscriber base. It features multiple songs, with world-class music experts and trend setters curating thousands of daily playlists and selections.
In addition, the iPhone maker benefits from partnerships. Its association with Verizon has made Apple Music available for free to its customers.
Amazon is seeing strong momentum on its Amazon Music Unlimited, a premium music subscription service, allowing Prime subscription users to stream millions of songs.
The company’s decision to integrate artists’ products into the Amazon Music app remains a major positive. Its acquisition by Wondery remains remarkable.
Meanwhile, Spotify, which dominates the music streaming market, is benefiting from the growth of premium subscribers. The focus on customizing playlists enhances users’ music experience.
Additionally, the company’s focus on expanding podcast content remains a strong asset. The acquisitions of two podcast networks, namely Gimlet and Anchor, remain notable.
Still, YouTube Music’s user-friendly features should help it face fierce competition from its peers.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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