5 Companies To Watch As Music Streaming Explodes
Earlier this week, Nielsen SoundScan released data showing that US consumers purchased and downloaded 12 percent fewer songs in 2014 compared to a year earlier. The use of streaming services, however, increased by 54 percent.
Listening to music using online streaming subscriptions was a growing trend that many see continuing through 2015, making companies' investment in growing online services an important key to success in the music industry.
Spotify AG continued to dominate the streaming space, making the company's rumored IPO even more enticing. Many are expecting to see Spotify go public some time in 2015, with a valuation of around $10 billion.
Pandora Media Inc (NYSE: P), Spotify's publicly-traded competition, made itself more visible this year by making a deal with Microsoft Corporation (NASDAQ: MSFT) to feature a Pandora music streaming app on the company's Xbox One that will allow gamers to listen to personalized radio stations while playing.
Google Inc (NASDAQ: GOOG), hoping to hook customers who have been using YouTube to stream music, rolled out a Google Play Music All Access account, which offers users a 22-million song database for $9.99 per month.
Meanwhile, Apple Inc (NASDAQ: AAPL)'s iTunes looked to be falling behind, but many see 2015 as a developmental year, in which the company could get on board with the streaming trend.
Apple recently bought Beats Music for $3 billion, a deal which most expect to see exploited in the coming year.
Beats currently offers a $9.99 per month streaming service, which could become a part of iTunes' offerings in the near future.
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