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Music is timeless, and the music industry has continued to grow through the decades. The live music industry is on an uptrend, and many aspiring artists are developing a following through social media platforms. With so many changes arising due to technological advancement and social media, there has never been a better period to invest in music stocks.
Global music revenue continues to grow fast, making it clear why investors are adding music stock to their portfolios. Music shares range across streaming platforms, record labels, radios, and many more. However, to invest in music stocks, you first need to get aware of trading platforms and brokers like Naga broker.
If you’re confused about which broker to opt for, Brokerschart compiles brokers you can explore for Forex trading and also trade CFD. In this article, we’ll break down the best music stocks to invest in.
5 Best Music Stocks to Buy
This section will explore the five best music stocks to invest in. We’ve curated a list of the best music companies; let’s take a look.
- Live Nation Entertainment
Live Nation Entertainment owns Ticketmaster and has almost a total monopoly on concert ticketing. The company has a 70% market share in the ticketing market. This company continues to grow quickly due to regular live performances by music artists. In addition, music festivals have also become quite popular in this social media era, increasing the company’s growth.
Although Live Nation Entertainment suffered during the pandemic, losing over 50% of its stock, the company has recovered significantly. With events selling out faster than ever, things have never been better for the brand.
- Spotify
Over a decade ago, Spotify kickstarted music streaming. Since then, Spotify has expanded to acquire many podcast franchises. Today, this music streaming giant boasts high-profile personalities like Bill Simmons, Meghan Markle, and Joe Rogan as some of their podcasters.
According to Statista, Spotify has 195 million paid subscribers. The streaming platform also boasts over 400 million monthly active users, including ad-supported listeners. Of course, this doesn’t mean the company doesn’t face its threats, primarily from Apple. However, Spotify’s profits continue to increase yearly due to its subscription business model. This makes it one of the best options when investing in music stocks.
- SiriusXM Radio
This is the only satellite radio provider in the US and stands out because of its strategy. SiriusXM Radio relies entirely on satellites to transmit music and other audio content. This allows the company to provide listeners with reliable radio service in places where internet-based music platforms are sure to fall short. In addition, due to its versatility, Sirius is commonly used inside vehicles.
SiriusXM Radio provides its 65 million listeners with audio entertainment, including music, talk, sports, news, and traffic and weather updates. The brand is also well associated with Howard Sten, a shock jock who gained attention in 2005 after taking its talk show to Sirius.
In 2019, SiriusXM acquired Pandora, allowing the company to increase its exposure to music streaming. In addition, its relationship with auto manufacturers gives it a unique advantage, especially since satellite radios come preinstalled in almost every new vehicle in the US.
- Sonos
When looking for music stocks to invest in, Sonos is a great place to start. To make a better investment decision, https://brokerschart.es/ will provide you with adequate information on how to trade CFDs. Sonos is a wireless speaker maker that invented multi-room wireless audio products. The company has many streaming partners, including Pandora, Spotify, and Apple Music.
The company has delivered strong growth in 2022, with total household listeners increasing by 11% to 14 million this year. In addition, the company reported a growth in revenue in the fourth quarter of the year at $1.752 billion. Although the company faces competitive threats from companies like Google, Amazon, and more, it has continued to grow steadily.
- IHeartMedia
This company is the biggest operator of broadcast radio stations in the US and is formally known as Clear Channel. In the third quarter of 2022, IHeartMedia successfully generated $485 million in revenues through broadcast radio activities. The company owns 858 radio stations and boasts the most no. 1 ranked stations in top markets. The company also operates IHeartRadio, which gives users access to digital feeds of radio stations and music streaming.
The company’s primary source of revenue is broadcast advertising and depends majorly on car commuters. However, its advertising model is highly profitable and has a far reach that gives it a competitive advantage over competitors.
How to Buy Music Stock
Music entertainment stocks are winners today if you want a profitable venture. First, you must pay attention to changes within the industry. However, the music companies reviewed here are well-positioned to stay ahead of evolutions within the industry.
You can start buying music stocks today when you open a live or demo trading account on Brokerschart. Brokerschart provides you with the specification of various trading platforms, providing more information about their utility. By exploring the platform, you can choose the best broker, like Naga Broker, to buy music stocks through.
