Alphabetit is (GOOGL – Free Report) Google division is sparing no effort to beef up its music streaming service – YouTube Music – to deliver an improved experience.
This is evident from its introduction of the latest YouTube Music search algorithm features and improvements.
The company has introduced a family shelf named “For Family” to provide a unique family listening experience. The shelf includes a custom family mix and appears on the home feed.
The Listen Again shelf for smart TVs and game consoles will now feature an increased number of results. Also, it will stop showing duplicates.
Other than that, enhanced search algorithms will only play the selected song in the search results.
Users of the YouTube Music Wear OS app will now be able to shuffle and play all downloaded music.
We think these features will help Google gain traction with music lovers.
Growth of the music streaming market
The latest move bodes well for the company’s growing music streaming efforts.
Besides the latest decision, Google recently rolled out the snooze feature in YouTube Music during casting sessions. The feature will allow users to repeat entire albums, playlists, and individual songs.
The feature works on Android and iOS versions of YouTube Music.
With the growing efforts, Google remains well positioned to quickly penetrate the booming global music streaming market.
Uninterrupted access to high-quality audio files without the need to download them, which typically consumes time and phone memory, is a key enabler.
The growing 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 will 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.
User penetration in the highlighted market is expected to reach 9.4% in 2022 and 12.2% by 2026.
Given the optimistic scenario, not only Alphabet but other companies like Amazon (AMZN – free report), Apple (AAPL – free report) and Spotify (PLACE – Free Report) are going to great lengths to capitalize on the aforementioned insights.
Apple is continuously gaining momentum in the underlined market with expanding Apple Music subscriber base. It features multiple songs with world-class music experts and tastemakers who curate thousands of daily playlists and selections.
The iPhone maker benefits from partnerships. Its association with Verizon has made Apple Music available to its customers for free.
Amazon is enjoying strong momentum on its Amazon Music Unlimited, a premium music subscription service, allowing Prime members 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.
The company’s focus on expanding podcast content remains another major bright spot. The acquisitions of two podcast networks, 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.