Square (SQ) in Talks to Buy Tidal to Enter Music Streaming Space

Square (SQ) in Talks to Buy Tidal to Enter Music Streaming Space

Square SQ eyes business-diversification strategy in a bid to bolster its financial performance in the near term.

This is evident from its latest talks with Jay-Z’s music-streaming service called Tidal. Notably, the service, which offers more than 60 million songs and 250,000 videos, is available in 53 countries.

If the deal acquisition under review happens, Square will get exposure to new growth market. Further, it will expand its service offerings.

Moreover, the move holds growth promise as the music-streaming service market is booming.

The ever-changing landscape of this data-driven world has created a unique niche for music-streaming services.

Growth Opportunities in Music-Streaming Space

With increasing Internet and smartphone usage, music streaming services, offering unlimited and uninterrupted access to high-quality audio files, are gaining rapid traction globally.

Further, the increasing proliferation of smart speakers and wearables like smartwatch, which can be synchronized with music streaming apps, is driving the demand for such services.

Further, a Statista report shows that this market is expected to generate $19.7 billion in revenues for2020 and the figure is expected to hit $33.4 billion by 2025, witnessing a CAGR of 11.1{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}.

Additionally, the user penetration rate in the market is likely to have hit 7.3{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} in 2020. The figure is expected to reach 11.6{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} by 2025.

Square, Inc. Price and Consensus


Square, Inc. Price and Consensus
Square, Inc. Price and Consensus

Square, Inc. price-consensus-chart | Square, Inc. Quote

Intensifying Competition

Square’s foray into this promising market peps up the music streaming war against companies like Spotify SPOT, Amazon AMZN and Alphabet’s GOOGL Google, which are notable players of the market.

Spotify continues to witness solid momentum among paid subscribers on the back of strong promotions. Further, its compatibility with Google smart speakers and robust playlists remain major positives.

Then again, Amazon is constantly gaining steam on the heels of Amazon Music Unlimited and Amazon Music HD. The company offers tens of millions of songs, and thousands of expert-programmed playlists and stations.

Google has been making advances in this market over the past few years. The company’s latest on-demand music streaming service called YouTube Music is aiding its momentum in the market by leveraging the popularity of YouTube and the capabilities of its machine-learning techniques.

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

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Square, Inc. (SQ) : Free Stock Analysis Report
Spotify Technology SA (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

Bear Of The Day: Chico’s (CHS) Previous post Bear Of The Day: Chico’s (CHS)
Which Stock Should Value Investors Buy Now? Next post Which Stock Should Value Investors Buy Now?