Can streaming produce any big winners?
The biggest challenge facing the industry is that Pandora, Spotify, Rdio, Rhapsody and all the other major players don't make money -- in fact, they have actually increased their losses as they add customers.
According to a November 2013 report from Generator Research, the current business model for streaming music is "inherently unprofitable."
"Our analysis is that no current music subscription service -- including marquee brands like Pandora, Spotify, and Rhapsody -- can ever be profitable, even if they execute perfectly," Andrew Sheehy, the main author of the report, concluded.
While financial returns have so far not been good, all three panelists were optimistic there will ultimately be financially successful streaming services.
Daniel Kline owns shares of Apple. He uses Pandora but is not bullish about it business model. The Motley Fool recommends Apple, Google (A shares), Google (C shares), Netflix, and Pandora Media. The Motley Fool owns shares of Apple, Google (A shares), Google (C shares), Netflix, and Pandora Media. 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.