With Apple And Spotify Slugging It Out, Amazon Step Into The Ring
With no time for respite following a tense bout with Apple in the music streaming industry, Spotify’s stock price could be in for more turbulence, as Amazon Music HD looks to contend.
Bloodied and bruised, Spotify faces a new heavyweight contender in the form of Amazon. Spotify’s rivalry with Apple made all the headlines this year — back in March, we reported that Spotify had reported Apple to the European Commission for anti-competitive practices on its app store.
By the summertime, it seemed that the war between the two tech giants would continue to rage on, as we reported in our subscriptions earnings wrap-up that Apple had gained market share in the U.S., with Spotify winning out globally.
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The latest news does not bode well for Spotify, however, as Amazon’s latest innovation, Amazon Music HD, rolled out on Tuesday. The difference between Amazon Music and Spotify seems to be that Amazon’s new premium music service boasts over 50 million songs that it calls HD quality, which is the company’s term for its songs with CD-quality bit depth of 16 bits and 44.1kHz sample rate.
Amazon, who is one of the richest companies in the world, will have a vastly superior resource pool to combat Spotify.
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A recent bump in Spotify’s share price however, shows positive signs, suggesting that investors are not too worried about the latest threat. Amazon stock, on the other hand, has seen a slight dip overnight. If Spotify could hold off Apple, who is to say it can’t do the same to Jeff Bezos’ tech empire?
We at MyWallSt firmly believe that Spotify still remains a great investment.