20 million listeners
Yandex (YNDX) has launched its streaming music service in Israel, matching a move by its rival Spotify (SPOT), which introduced its music service in Israel in March. Spotify is the world’s largest streaming music company, boasting 183 million active listeners on its platform as of the end of June.
Pandora (P) and Apple had 71.4 million and ~50 million listeners, respectively, during the same period. Yandex’s streaming music service, Yandex.Music, has attracted more than 20 million listeners, mostly in former Soviet states.
Yandex.Music ventures outside Soviet states
The Israel debut marks first time Yandex.Music has been offered outside former Soviet states, and it highlights Yandex’s confidence that it can compete with the streaming music top guns in the global market. Pandora and Apple Music are also available in Israel.
Looking beyond advertising sales
Yandex.Music is one of Yandex’s growing list of products whose monetization goes beyond advertising. Other products and services in this category include Yandex.Taxi and Yandex.Station, a smart speaker device. Yandex.Music is available in paid and free ad-supported versions.
Yandex reported revenue of $472.8 million in the second quarter, representing an increase of 34% YoY (year-over-year). Alphabet (GOOGL) and Amazon (AMZN) grew their revenues 25.6% and 39.3% YoY, respectively, in the period. Yandex is expected to report revenue of $479.7 million in the third quarter, implying top line growth of 18.7% YoY.