YouTube Music is beginning to look and feel a lot like Play Music, according to a post at 9to5 Google.
We live in a world of big platforms. Don’t let anyone tell you that breaking through is easy. It’s not. It’s the reason there are only two mobile operating systems, iOS and Android. It’s also the reason you probably didn’t know Google ( (GOOGL) - Get Report) has a Spotify competitor.
Google should be able to compete.
Android, in one form or another, runs of 85% of the world’s smartphones. Play Music, the first incarnation of its streaming music service, got a premium real estate on most devices outside of China. Despite that, the service failed to catch on, and is now being rebranded as YouTube Music.
It will not matter. YouTube Music is likely to flounder, too. Sorry, Google – you’re too little, too late.
That’s because grabbing mindshare first, as Spotify did, is a big deal. Innovating incessantly, like Spotify does, is a competition killer.
Spotify got a downgrade today from Bernstein. The investment researcher knocked the shares from “market perform” to underperform.
Don’t worry too much about the downgrade. Bernstein has been behind the curve all the way on Spotify. Even with the downgrade, the stock is up 78% year-to-date. Not exactly a market performer.
Buy Spotify into weakness.