More Music, More Streaming
Poorva@poorvaxshukla
The idea
I believe people are going to keep listening to more music, and streaming apps are where that growth shows up as revenue. The core is Spotify and Tencent Music, the two biggest pure streaming plays, surrounded by the tech giants behind Apple Music, YouTube Music and Amazon Music for steadier footing, plus Sirius XM for Pandora and Sonos for the hardware people stream through. No single name dominates, a small cash buffer stays on the side, and this is built to be held for years rather than traded on headlines.
What will be bought
- These companies make nearly all their money from people streaming music, so more listening flows straight to them. · Spotify Technology S.A.It makes nearly all its money from listeners paying for subscriptions or hearing ads, so it's the purest way to own growth in music streaming., Tencent Music Entertainment GroupIt runs China's biggest music apps, so it's how the take reaches the largest group of listeners on earth.40%
- Apple, Google and Amazon run three of the biggest music apps, and their size makes the take steadier. · Apple Inc.It sells Apple Music and the iPhones and AirPods that a huge share of people stream through, so more listening helps it in two ways., Alphabet Inc.It owns YouTube, where many people listen to music for free with ads, plus YouTube Music and Premium for those who pay., Amazon.com, Inc.It bundles Amazon Music with Prime and sells the Echo speakers people ask Alexa to play songs on, so more listening keeps people inside its ecosystem.35%
- Sirius XM owns Pandora, an older streaming app that benefits as listening keeps moving online. · Sirius XM Holdings Inc.It owns Pandora and satellite radio in tens of millions of cars, so it catches listening that moves from old radio to streaming.8%
- More streaming at home means more demand for the speakers people play it on. · Sonos, Inc.It makes the speakers that play Spotify, Apple Music and other streaming services in homes, so rising time spent listening at home drives speaker sales and upgrades.7%
- Cash10%