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Apple Boosts Music Service Offerings With Asaii Acquisition
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Apple (AAPL - Free Report) is leaving no stone unturned to boost its music service offerings. Per musically, the company has acquired music analytics startup, Asaii, for less than $100 million, to bolster its position in this market.
Co-founded in 2016 by Kuriakose Sony Theakanath, Austin Chen and Chris Zhang, Asaii is an “automated machine learning A&R and music management platform.” Prior to this deal, Apple completed the acquisition of UK-based Shazam Entertainment.
Asaii’s tools and technologies are capable of providing detailed music data insights for music streaming companies.
With the help of machine learning technology, Asaii provides artists with in-depth information about the impact of their music on users through its easy-to-use dashboards. The feature will add value to Apple’s Music for Artists platform, which also allows artists to understand the impact of their music across Apple Music and iTunes.
Notably, Apple’s major competitor Spotify (SPOT - Free Report) recently unveiled a similar feature, which allows artists to directly upload their work to the company’s platform and see music related metrics.
Additionally, Asaii Recommend can create personalized playlists and recommend songs to users based on their listening pattern. This feature can particularly enhance Apple’s “For You” section, which provides recommendation for users.
Moreover, Assai Score can identify upcoming popular artists at the earliest by taking data from platforms like SoundCloud and Spotify among others.
The prediction with a 70% hit rate, per Theakanath, may help Apple gain a first-mover advantage, in terms of signing exclusive deals with upcoming artists, over the likes of Amazon (AMZN - Free Report) and Alphabet’s (GOOGL - Free Report) YouTube.
Competition a Concern
Apple faces intense competition from Spotify in the music streaming space. Together, both the companies constitute nearly 80% of the total domestic music streaming market.
Spotify with a global user base of 180 million is way ahead of Apple’s user base of more than 50 million. Additionally, Spotify’s premium subscribers (contributed 90% to total revenues) soared 40% year over year to 83 million, in the second-quarter 2018. This does not bode well for Apple.
Additionally, Amazon Prime Music and Amazon Music services, on a combined basis are growing quickly, currently command 12% market share, with 27.9 million subscribers globally at the end of the first half of 2018.
Moreover, YouTube revamped its premium music offerings in June and has added millions of subscribers since then.
However, Apple Music is witnessing increasing adoption as it grew more than 50% year over year in third-quarter 2018and continues to contribute to services revenues (17.9% of sales). Moreover, with relevant acquisitions in the music streaming space, Apple is expected to strengthen its position by offering unique and advanced features to its users.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Apple Boosts Music Service Offerings With Asaii Acquisition
Apple (AAPL - Free Report) is leaving no stone unturned to boost its music service offerings. Per musically, the company has acquired music analytics startup, Asaii, for less than $100 million, to bolster its position in this market.
Co-founded in 2016 by Kuriakose Sony Theakanath, Austin Chen and Chris Zhang, Asaii is an “automated machine learning A&R and music management platform.” Prior to this deal, Apple completed the acquisition of UK-based Shazam Entertainment.
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
Deal Benefits
Asaii’s tools and technologies are capable of providing detailed music data insights for music streaming companies.
With the help of machine learning technology, Asaii provides artists with in-depth information about the impact of their music on users through its easy-to-use dashboards. The feature will add value to Apple’s Music for Artists platform, which also allows artists to understand the impact of their music across Apple Music and iTunes.
Notably, Apple’s major competitor Spotify (SPOT - Free Report) recently unveiled a similar feature, which allows artists to directly upload their work to the company’s platform and see music related metrics.
Additionally, Asaii Recommend can create personalized playlists and recommend songs to users based on their listening pattern. This feature can particularly enhance Apple’s “For You” section, which provides recommendation for users.
Moreover, Assai Score can identify upcoming popular artists at the earliest by taking data from platforms like SoundCloud and Spotify among others.
The prediction with a 70% hit rate, per Theakanath, may help Apple gain a first-mover advantage, in terms of signing exclusive deals with upcoming artists, over the likes of Amazon (AMZN - Free Report) and Alphabet’s (GOOGL - Free Report) YouTube.
Competition a Concern
Apple faces intense competition from Spotify in the music streaming space. Together, both the companies constitute nearly 80% of the total domestic music streaming market.
Spotify with a global user base of 180 million is way ahead of Apple’s user base of more than 50 million. Additionally, Spotify’s premium subscribers (contributed 90% to total revenues) soared 40% year over year to 83 million, in the second-quarter 2018. This does not bode well for Apple.
Additionally, Amazon Prime Music and Amazon Music services, on a combined basis are growing quickly, currently command 12% market share, with 27.9 million subscribers globally at the end of the first half of 2018.
Moreover, YouTube revamped its premium music offerings in June and has added millions of subscribers since then.
However, Apple Music is witnessing increasing adoption as it grew more than 50% year over year in third-quarter 2018and continues to contribute to services revenues (17.9% of sales). Moreover, with relevant acquisitions in the music streaming space, Apple is expected to strengthen its position by offering unique and advanced features to its users.
Apple currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>