Honeycomb Asset Management, a New York hedge fund started by David Fiszel, is bullish on streaming music.
People are paying about twice as much per year for streaming music now as they used to for CDs, says Honeycomb.
“In 2015, music industry sales grew sustainably for the first time in almost two decades, and entering 2018, we are still in the early stages of this evolution,” Honeycomb said in its fourth-quarter investor letter.
Honeycomb gained 21% last year.
Streaming music has changed the music industry for the better, according to New York tech-focused hedge fund Honeycomb Asset Management. Honeycomb, launched last year by David Fiszel, has more than $500 million under management and owns a private stake in Spotify.
“We believe streaming music will continue to grow at rates that far exceed investor expectations, with its market size quadrupling from $10 billion to $40 billion over the next eight years,” the hedge fund said in a fourth-quarter letter to investors seen by Business Insider.
The hedge fund laid out its thesis:
“The music industry is reaching a key inflection point on both top-line and profitability
The streaming music business model is fundamentally more attractive than the previous model
Growth is open-ended and the Total Addressable Market is larger …read more
Source:: Businessinsider – Technology