Music streaming services losing money

http://www.nasdaq.com/article/are-there-any-music-streaming-standouts-cm356928

By Kapitall, May 28, 2014

Pandora ( P ) , the largest and best known music streaming service, has 250 million registered users and increased its revenue 56% from FY 2012 to 2013.

This, however, seems to obscure the inefficiencies of streaming services: the more users they gain the greater their financial losses widen. Pandora's rose to $38 million in 2013.

Spotify, another player in the industry, also does not turn a profit, as just 25% of its 40 million person user base actually pays for the service - a key metric Spotify must raise in order to make its operations viable in the long term.

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