All gigs are off. We’re stuck at home, worried about our next buck and glued to our devices. No doubt about it, COVID-19 has made 2020 a dumpster fire to remember. The novel Coronavirus is punishing stocks globally, and live entertainment companies are taking a beating as the gig economy is placed in a deep freeze.
It’s not all bad news for some of your fave digital media brands.
Spotify’s stock closed up 2.1% to $137.78 during trading Wednesday on the New York Stock Exchange, a figure neatly settled between its 52-week peaks ($161) and lows ($109). The go-to name in music streaming has been in the spotlight since the health crisis turned global. Bernstein analyst Todd Juenger noted it was “perfectly insulated” from the impact of the virus, though not everyone agrees as data from the U.S. and elsewhere has suggested that streaming music has enjoyed less engagement than video platforms, like Netflix.
Also noteworthy is Jaxsta which saw its stock price jack-up on Wednesday, opening at .03 and closing up at 0.048 , easily a 52-week high. That’s a 118% spike from the previous close.
The official music credits resource hasn’t been without its challenges. In a March 31 update to the Australian Stock Exchange, the company announced a raft of cost-saving measures, including a headcount reduction and temporary pay cuts for top brass. In related news, Linda Jenkinson joined as chair, succeeding former APRA AMCOS CEO Brett Cottle who left the role earlier in the year due to “personal reasons.” Cottle continues on the company’s board.
Jenkinson, who is recognised as the first New Zealand woman to list a company on the NASDAQ with DMSC, the on-demand courier firm she co-founded, will be expected to help steer the company through “challenging times ahead”.
The Sydney company was founded in 2015, and by the end of 2018 it was officially listing on the ASX under the code “JXT”. In June 2019, Jaxsta’s open beta product debuted, and the team launched Jaxsta Pro beta in November 2019.
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And Netflix? Not surprisingly, the streaming film and TV platform is a winner as shares in the company rose 3% to $426.75 on Wednesday, a new all-time high. With that result, Netflix has a market capitalization of $187.3 billion, slightly greater than that of Disney. Joe Exotic, take a bow.
Expect to see more activity when Netflix reports its Q1 earnings next Tuesday (April 21).
A new study on U.S. consumer habits in the age of the Coronavirus has found a quarter of respondents are keen to add more subscriptions to fill out their days.
In the report, “COVID-19: Tracking the impact on the Entertainment Landscape,” MRC Data and Nielsen Music found that almost two-thirds of respondents are engaging with more entertainment now that we’re forced to work from home.
Almost a quarter of participants in the study added at least one new sub in recent weeks, with 81% adding video and 38% adding music.