Google Inc (GOOG), Apple Inc. (AAPL), Pandora Media Inc (P): Music Streaming Competition Getting Heated

Pandora Media Inc (NYSE:P)’s 70 million active users is a fraction of both Apple’s users, as well as Google’s users across Android, Search and YouTube, but Pandora does have more than 200 million registered users on its Internet radio platform. Smaller competitors like Spotify have only ~24 million users, and both Pandora Media Inc (NYSE:P) and Spotify are solid candidates for being acquired by a bigger tech firm, which might include the likes of Amazon.com, Inc. (NASDAQ:AMZN) or Microsoft Corporation (NASDAQ:MSFT).

The Bottom Line

The chances of Apple unloading a subscription-based music streaming model might look slim, because it will cannibalize existing sales from iTunes. However, the small amount of cannibalization that might stem from a monthly offering will be offset in the long run. A subscription-based model will both benefit users and increase Apple’s revenue run-rate of $16 billion on iTunes alone.

Even though a lot of users listen to music on YouTube, Google’s entry into the music streaming business is a great move for Android-based OEMs and takes it head-to-head with iTunes, Pandora and also Amazon.com, Inc. (NASDAQ:AMZN) MP3. However, it won’t be a complete game-changer for Google’s revenues but will make consumers stickier on its platform for the long-haul. The competition in the music streaming business is likely to increase a lot in the near-term.

Ishfaque Faruk has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

The article Music Streaming Competition Getting Heated? originally appeared on Fool.com and is written by Ishfaque Faruk.

Ishfaque is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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