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Google Offers Free Ad-Supported Music to Challenge Pandora

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Google starts free ad-supported music streaming service

The music streaming market is getting more crowded by the day. Spotify continues to be in the news because of its growing valuation. As well, Apple (AAPL) has a subscription-based music streaming service, Apple Music.

Google (GOOG) (GOOGL), which used to offer a $10 per month subscription music streaming service known as Google Play Music, has announced that it has started offering a free ad-supported music streaming service. In its official blog post, Google announced that this service allows users to listen to songs in their preferred genre or based on whatever mood they’re in.

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Google has leveraged the technology of Songza, the company it acquired last year, to develop this service. For our readers who don’t know about Songza, please read Must-know: Why Google acquired the music streaming service Songza.

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Pandora stock continues to decline due to looming competition 

With its new service, Google presents a stiff challenge to Pandora (P), whose music streaming service also gets the majority of its revenues from advertising. Incidentally, Pandora stock has fallen by 18% over the last month, as the chart above shows. Spotify, Apple, and Google have all have risen to challenge Pandora over the last few months.

To get diversified exposure to Google, you can invest in the Technology Select Sector SPDR Fund (XLK). XLK invests 3.7% of its holdings in Google.

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