Is It Profitable To Invest In Music Stocks?

is it profitable to invest in music stocks top stock picks

The music industry has undergone some severe changes in the last few decades – and with the pandemic of the previous few years, there have been further disruptions and progress. There are so many changes to how artists are managed and where the power and influence lie within the higher end of the streaming music industry. Music streaming companies have really mixed things up so that record labels and event organizers have a very different space to operate in. 

If you’re looking to invest in the music industry, it’s good to know a bit about where the potential to make money lies in stocks. Check out these music stock options that you may want to consider: 

4 Top Music Stocks To Invest In

1. Sonos 

The chances are you may have a wireless speaker system in your home already, and if you’re a music fan it could well be a Sonos speaker. This company was one of the first to produce multi-room wireless audio products and now has over 31 million products. 

Sonos has over 100 streaming partners including big names like Apple Music and Spotify, but it’s good to be aware that there is a competition to them as a whole from companies such as Amazon and Google. 

2. Spotify 

Starting over 10 years ago, Spotify has changed the way we listen to music forever. Music streaming is big business and Spotify now has a paid subscriber base, which reaches almost 200 million. One of the recent expansions of the company is the acquisition of multiple podcast franchises like Joe Rogan, and the company has 400 million monthly active users. 

It’s in constant competition with Apple and other tech giants but years of investment have placed Spotify in a strong position. 

3. Live Nation Entertainment 

This company owns Ticketmaster and has a more than 70% market share of the concert ticketing arena. Although the company suffered during the pandemic (shockingly it lost more than 50% value) it is set to bounce back. Impressively Live Nation Entertainment had even recouped the majority of its pandemic lost revenue by Quarter 3 of 2021 and is performing strongly so far in 2022. 

With a prediction that live events are set to boom with the pent-up demand post-pandemic, this could be a top stock option for those keen to invest. 

4. Warner Music Group 

This group owns the majority of major record labels including Atlantic Records, Asylum, and Elektra. Whereas many people think traditional record labels are now redundant, it’s important to remember that they do still play a major role and are used by artists to manage key elements such as marketing, management and production of music, videos and events. 

Warner Music Group largely makes their money from recorded music and music publishing. Music publishing in particular is experiencing a boost with the growth of music streaming. Consider investing in this top music stock.

Where Should You Put Your Money In Music? 

There’s no doubt that the tech sector is posing serious competition to even the most respected and renowned companies in the music industry. Music makes money now and it always will in one medium or another.

Knowing as much as possible about the music industry and the changes it’s undergoing (and keeping up with these changes) is the best thing prospective investors can do before making a decision on where to invest. Do your research before investing in any music stocks so you can choose the right stock.

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