Too Many Streaming Music Services

24/7 Wall St.

ipod/iphone/mp3 player with earbudsBetween Google Inc.’s (NASDAQ: GOOGL) free streaming service and Taylor Swift’s brutal attack on Apple Inc.’s (NASDAQ: AAPL) plans to offer free trial subscriptions, something has been lost. There are too many music services, be they downloads, streaming, ad-supported or paid subscription supported. Not every one of these can survive, or at least not all can prosper.

Pandora Media Inc. (NYSE: P) has more than 80 million active users. Spotify has a bit short of 60 million. Each needs to get a huge amount of paid advertising, or to rush to covert free users to paid ones. With so much free music on the Internet, that is a long shot. Pandora’s shares demonstrate that companies without huge revenue and iron-clad balance sheets have fallen out of investor favor. The price of its shares has been halved over the past 52 weeks. Its market cap is down to $3.5 billion. It lost $48…

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