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.

The new building at Google Bay View campus in Mountain View, California.


Alphabet (NASDAQ:GOOG) has invested significant resources in building its music streaming business. The music streaming industry itself is reaching a maturity phase where a large section of customer base has already subscribed to this service. According

YouTube Music is in the fourth position for music streaming industry, excluding China.

MIDiA Research

Comparison of market cap and PS ratio of Netflix and Spotify.


Comparison of PE ratio of Alphabet, Meta, Apple, and Netflix.


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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