With The GRAMMYs Just Two Months Out, The Music Industry Is Still Going Strong - What Will It Look Like In 2030?
Portfolio Pulse from Johnny Rice
A Goldman Sachs report predicts the music industry will reach $153 billion by 2030, with a 7% CAGR. Streaming is expected to dominate with a 12% CAGR and 86% market share of recorded music. The industry is seen as resilient, even in a higher inflation/weaker macro environment. The MUSQ Global Music Industry ETF (MUSQ) offers investment opportunities in the music industry, with top holdings including Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL), Sony (SONY), and Spotify (SPOT).
December 08, 2023 | 10:59 am
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POSITIVE IMPACT
Apple, holding a 7.17% weight in MUSQ, could experience a positive impact due to the growth in the music industry, especially through its Apple Music service.
Apple's stake in the music streaming market via Apple Music positions it to benefit from the projected industry growth.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Amazon, with a 7.57% weight in MUSQ, may see a positive impact from the growth in the music industry, particularly in its streaming services.
Amazon's significant presence in the music streaming market could benefit from the industry's overall growth, as highlighted by the Goldman Sachs report.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet, with a 6.24% weight in MUSQ, stands to gain from the music industry's growth, particularly through its YouTube and Google Play Music services.
Alphabet's involvement in music streaming and content through platforms like YouTube could see a boost from the industry's expected expansion.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
MUSQ ETF, which invests in the music industry, could benefit from the projected growth of the industry to $153 billion by 2030, with streaming services expected to take an 86% market share of recorded music.
The positive outlook for the music industry and streaming services directly aligns with MUSQ's investment focus, potentially increasing investor interest and inflows into the ETF.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Sony, with a 3.42% weight in MUSQ, may benefit from the music industry's projected growth, leveraging its music production and equipment segments.
Sony's diverse involvement in the music industry, from production to equipment, positions it to capitalize on the sector's growth.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
Spotify, with a 2.80% weight in MUSQ, is likely to see a positive impact from the music industry's growth, especially as a leading player in music streaming.
As a major streaming service provider, Spotify is well-positioned to benefit from the projected increase in market size and streaming's dominance.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80