Alphabet Is Crushing Competition In A Key Recurring Revenue Business


  • The competition within streaming music industry is heating up as Big Tech players try to corner greater market share.
  • Alphabet’s YouTube Music and YouTube Premium subscription have a significant advantage due to lower priced combo offer of ad-free viewing on YouTube.
  • YouTube has already announced reaching 80 million subscription level in the quarter ending September 2022 and we could soon hear an announcement once it reaches 100 million level.
  • YouTube Music can become an anchor service for Google’s subscription services which provides a significant flywheel effect for other services.
  • Wall Street could give a better standalone valuation to the music streaming service of Alphabet due to better revenue predictability, long growth runway and halo effect of this service.