Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



1 Music Company That'll Disrupt Your Tech Investments

Steve Jobs said in a 2007 interview, "People want to own their music. The subscription model has failed so far... never say never, but customers don't seem to be interested in it." Looking just at the surface of iTunes' current state, Apple's  (NASDAQ: AAPL  ) former CEO seems to be right. iTunes is a $17 billion a year business. And this year, the company will see its 100 billionth download.

Well, it seems Jobs was wrong. When you look at the history of Pandora  (NYSE: P  ) , it looks like the subscription model is here to stay. Not only did Pandora go public in 2010, but it also has over 200 million registered users. Its daily active users are still growing and stands at 65 million. Additionally, the company's revenues have grown by 50% the last year. It's no wonder that Google  (NASDAQ: GOOGL  ) is trying to get in on this space with its own streaming service.

While this is all great news for Pandora, the reality is that Pandora lost its innovative luster. Instead, there's a new company on the market that Pandora didn't forsee: Spotify.

By tapping into Facebook's (NASDAQ: FB  ) open graph and letting its users share music seamlessly between friends, Spotify has garnered more users faster in the U.S. and across the world. In the video below, Fool contributor Kevin Chen reveals a few other key metrics proving why this social music company is the top dog in the space today.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2380423, ~/Articles/ArticleHandler.aspx, 9/27/2016 6:57:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
AAPL $112.88 Up +0.17 +0.15%
Apple CAPS Rating: ****
FB $127.31 Down -0.65 -0.51%
Facebook CAPS Rating: ***
GOOGL $802.65 Down -12.31 -1.51%
Alphabet (A shares… CAPS Rating: *****
P $13.99 Down -0.10 -0.71%
Pandora Media CAPS Rating: **