Todays’ investors who aim to perform their best investment in 2022 are attentively watching the entertainment and music industries. Two of the world’s most profitable pools of good deals.
If you need quick proof, consider that both industries are reaching their highest records in terms of profits for investors. Moreover, several technology companies invest in the music sector by buying stocks and producing technology products with smart applications for music and musicians. Arabs represent the largest group of investors in today’s financial markets: they know that choosing to invest in stocks of the entertainment and music industries means to, hopefully, double their invested money.
What’s Behind The Success Of Music Stocks?
Revenues from music streaming have been growing by 20% in the last couple of years. This positive trend encourages newborn companies to join the business and start offering streaming services worldwide. The implementation of several technology tools and products is clearly one of the essential factors that explain the dramatic rise of the music industry.
If you are thinking about coming out with a new investment in 2022, the music segment might seriously become your best option. Also, consider that music stocks can diversify your portfolio while giving you multiple choices. You can, for example, invest in share trading: this investment model allows you to buy a stock and pay for it, so you become the asset’s owner.
An increasing number of new investors are short-term traders. For them, it could be recommendable to speculate on the share’s price variation instead of buying and holding stocks as long-term and experienced investors prefer to do.
Best Music Stocks To Watch Closely For All Investors
The financial markets may look intimidating for all new investors, which might cause wrong choices. To make sure to pick only the best opportunities in the music industry, take note of the following stocks to consider first in 2022: they are some of the most performing and promising music companies of all time that all investors should watch closely.
- Spotify
Released in 2008 by a Swedish startup and landed on the stock market in 2018, Spotify is a music service for on-demand streaming of a large number of tracks from all around the world. Spotify is accessible in the free version to everyone, but if you don’t mind spending some dollars, you can enjoy more options for your music streaming. The revenues of Spotify come from advertisements and commercials (in the free version mostly), whereas the paid version comes with unlimited music streaming without commercials.
Currently, Spotify is running business agreements with Netflix and Tinder.
- Apple Music
As you may understand, Apple Music is the music extension of the worldwide known Apple company. Apple Music offers a diversified pool of products and services for everyone, which turns out to be a successful formula to counterbalance periods of sales difficulties of some Apple products (iPhone, iPad, Macbook, etc.). Apple Music is also part of a well-designed sales strategy: most mobile products of today can stream music, which leads Apple buyers to get interested in the services of Apple Music.
With over 60M subscribers in 2019, Apple Music is second only to Spotify in the list of the most important music companies stocks.
- YouTube
Everyone knows Youtube: it’s the world’s most popular and used platform to share videos and stream music. The users can look for music by genre, author, playlist, or automatic recommendation. Although YouTube is mainly popular in its free version, there’s also a paid version with ad-free streaming, audio-only background play, and a few more music services. YouTube premium services are accessible to Google Play Music subscribers, as well.
The expansion of YouTube in the world seems to continue and to even fasten by reaching new countries like Ukraine, Switzerland, and several South American countries. As of the end of 2021, YouTube counts over 20M registered members.
- Tencent Music Entertainment (TME)
The Chinese company Tencent launched its music streaming service platform in 2016. Tencent decided to create three streaming services: QQ Music, Kugou Music, and Kuwo Music. These Tencent platforms conquered 75% of the Chinese music streaming market, and they’re still gaining space. Each platform features specific options and a wide range of apps for several music activities, like karaoke or concert streaming. Currently, TEM has over 700M subscribers for annual revenue of $170M.
- NetEase Cloud Music
Again, another big name from China: NetEase Cloud Music is a popular streaming service with both free and paid versions. The service appeared in 2013, and already in 2017, it had over 300M subscribers for over 10M songs. As you can see, NetEase Cloud Music is a profitable opportunity to catch for investors, if you consider its brilliant growth trends.
If you are seriously interested in music stocks, you may look at these investment ideas and get inspired to create your investment portfolio. Either way, consider always following an expert adviser’s tips and recommendations before you start your adventure in the financial markets.
