SONY - Deeper Dive: The music industry is growing louder
2023-07-12 07:17:09 ET
More and more investors are tuning into the music industry as a possible area of investment. Earlier this week, the music world heard the volume turn up when Wall Street received a music industry-focused exchange traded fund.
On Monday, the MUSQ Global Music Industry ETF ( NYSEARCA: MUSQ ) launched, which aims to provide investors with exposure to the entire music ecosystem and track companies with a core business interest in the global music industry.
The industry has grown louder of late in regards to the investment world, as just last month there was another music-centric ETF launch. On June 21, 2023, the Clouty Tune ETF ( NYSEARCA: TUNE ) debuted. TUNE also intends to provide market participants with exposure to stocks deemed to be engaged in the music, media, and entertainment industries.
The music industry is increasing in demand and size, as Goldman Sachs forecasts that the industry’s revenue can reach $53.2B by 2030, which equates to a growing compound annual rate of 12%.
Aside from the two recently launched ETFs, other music industry players have also found themselves in the news. Some names include the likes of Spotify ( SPOT ), Live Nation Entertainment ( LYV ), Sirius XM Holdings ( XM ), Sony Group Corporation ( SONY ), Universal Music Group ( OTCPK:UNVGY ), and Warner Music Group ( WMG ).
Spotify is scheduled to announce its Q2 earnings at the end of the month, and investment firm Monness, Crespi, Hardt highlighted that the streaming music giant's user growth has been "surprisingly strong."
At the same time, Live Nation posted its latest round of earnings . The company posted Q1 GAAP EPS of -$0.25, which beat estimates by $0.21 and also topped revenue forecasts by $860M, as the company reported revenue of $3.13B.
In an effort to bring more subscribers to its namesake app, SiriusXM Holdings is reportedly closing its Stitcher podcast app later this year.
In share shifts, while Universal Music Group ( OTCPK:UNVGY ) and Sony Music ( SONY ) broadly maintained market share in recorded music in 2022, gains by independents were almost entirely driven by share loss at Warner Music Group ( WMG ), Goldman said.
The music industry is gaining even more attention and competition as TikTok Music looks to enter the sphere and compete alongside for market share with Apple Music ( AAPL ) and Spotify ( SPOT ), which together pretty much lead the music streaming industry.
More on the Music Industry:
- Sirius XM Holdings: Profitable Beaten Down Stock
- Warner Music Group: AI Is Chaos For The Music Industry
- Spotify: Grooving To A Growing User Base
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Deeper Dive: The music industry is growing louder