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Alphabet (GOOGL) Boosts YouTube Music With Latest Effort

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Alphabet’s (GOOGL - Free Report) division Google is reportedly testing UI redesign for YouTube Music playlists on Android mobiles to strengthen its offerings in the music streaming space.

The redesign includes a cover art appearing next to the highlighted artist image on the left and YouTube Music’s circular logo in the top-left corner.

Additionally, the playlist name is changed into a larger font size. Options like download, add to library, play, share and the overflow menu now come in a single line.

With this recent move, GOOGL aims to provide an enhanced user experience. This is likely to boost the adoption rate of YouTube Music.

Thus, the increasing adoption of YouTube Music is expected to benefit GOOGL’s financial performance in the near term, which will further help it win investor confidence.

GOOGL has gained 1% versus the Computer and Technology sector’s decline of 13.6% in the past year.

Growing YouTube Music Efforts

Apart from the latest move, Alphabetrecently introduced shortcut features and an album carousel to the YouTube Music’s Explore tab.

GOOGL added a capability by which users can save queues as playlists. Alphabetalso rolled out its “Recent Played” and “Turntable” widget to Android users.

Further, GOOGL rolled out the background listening feature for YouTube Music in Canada to provide an enhanced music experience to users in the country.

With these recent efforts, Google positioned itself well to rapidly penetrate the booming global music streaming market.

The market has been witnessing significant growth for a while owing to an increase in mobile advertisement spending, use of mobile apps, rise in the number of subscription services and users’ accessibility to local content on the music streaming platforms.

Per an Allied Market Research report, the online music streaming industry is expected to reach $24.7 billion by 2027, witnessing a CAGR of 9.8% between 2021 and 2027.

Competitive Scenario

Given this upbeat scenario, not only Google but also other companies like Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) and Spotify (SPOT - Free Report) are making strong endeavors to capitalize on the abovementioned prospects.

Amazon is gaining strong momentum in the music streaming market on the back of its expanding global footprint. Recently, AMZNrolled out Amazon Music in Columbia and Chile whereby music fans in both countries can access its premium music subscription serviceAmazon Music Unlimited.

Apple’s music streaming service Apple Music introduced a subscription tier powered by Siri named Apple Music Voice Plan. With this launch, subscribers can access millions of songs, playlists, personalized mixes, genre stations and Apple Music Radio.

Spotify expanded its podcast publishing and advertising platform Megaphone in Germany, France, Spain and Italy to help local publishers create, distribute and monetize their podcast content.

Nevertheless, YouTube Music’s growing efforts to expand its features are expected to continue giving tough competition to the above-mentioned peers.

Currently, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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