The Musq Global Music Industry (NYSE: MUSQ) ETF closed about 1. 5% higher on Wednesday, confirming that its uptrend and the option of a bull flag are in play, something Benzinga highlighted on Dec. 5 and Nov. 30.
The music industry has remained resilient in the years since the COVID-19 pandemic, with live performances, such as Taylor Swift’s “Eras Tour” and Beyoncé’s “Rennaissance Tour,” drawing large crowds of people who can’t reconnect with music in person.
Music streaming has also continued to grow exponentially. Apple Inc’s (NASDAQ:AAPL) division, which includes Apple Music, online subscriptions such as iCloud and AppleCare guarantees, generated profit of $22. 31 billion in the fourth quarter, up 16. 29% year-on-year. and 5. 19% since the third quarter. It’s worth noting that Apple is the second-largest stock in the MUSQ ETF, with a weighting of 7. 28%.
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Another of MUSQ’s major holdings, Spotify Technology S. A. (NYSE: SPOT), posted strong earnings and gains in the third quarter, leading to roughly 37% in inventory since then. And, while the streaming giant is lately in the midst of restructuring, Rosenblatt Securities believes that the downsizing could simply “blow up” Spotify’s margins.
Growth of AI and the music industry: Recent technological innovations, especially since the functions of synthetic intelligence have indeed touched the human psyche, with the advent of ChatGPT, have presented demanding situations for the entertainment industry and accelerated the functions of the sector and the artists who paint in it. he.
On August 21, Sir Lucian Grainge, chief executive of Universal Music Group, which is the seventh-largest stake in MUSQ, with a weighting of 2. 59%, said: “AI will magnify the human mind’s eye and enrich musical creativity in extremely new ways. tactics, and we’ll want to strike a balance.
In a post published on Alphabet, Inc. ‘s YouTube blog. (NASDAQ: GOOG) (NASDAQ: GOOGL), Grainge explained how Universal Music is working with the social media platform to leverage the prospects of AI in the music industry, compromising creativity or compensation for artists.
While Grainge believes AI can help to empower artists, he wrote that “AI will never replace human creativity because it will always lack the essential spark that drives the most talented artists to do their best work, which is intention. From Mozart to The Beatles to Taylor Swift, genius is never random.
MUSQ holds a 6.32% weighting in YouTube’s parent company Alphabet, the former which is a massively popular music and video sharing site, with over 2.5 billion monthly users. Alphabet is up about 44% over the last 52-week period.
A music-focused ETF: For those looking to invest in the music industry in general, a thematic ETF like MUSQ offers a great opportunity. MUSQ invests not only in the corporations mentioned above, but also in a number of corporations from sectors of the global music industry, focusing on very broad value spaces. The fund offers exposure to the entire music ecosystem, streaming, content and distribution, live music events and ticketing, broadcasting and satellite, devices and technology, and artificial intelligence.