Now we know why Apple (NASDAQ:AAPL) is taking on Pandora (NYSE:P) with iTunes Radio.

Nielsen Soundscan and Nielsen BDS came out with music consumption trends for the first half of 2013, and it's not very flattering for the traditional iTunes model. Streaming usage is up 24% at a time when individual track downloads fell 2%.

In this video, Fool contributor Rick Munarriz explains why Apple and even Sirius XM Radio (NASDAQ:SIRI) have shifted from emphasizing download revenue to keying on streaming as an incremental revenue source.

 

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Pandora Media. It recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.