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Can SoundCloud Go Compete with Apple Music, Spotify, and Pandora?

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Launch of SoundCloud Go

On March 29, 2016, Fortune reported that SoundCloud was another entrant to the paid subscription-based music streaming market. SoundCloud’s Go service, priced at $9. 99 per month, will provide both “amateur remixes, but also the artists’ official recordings,” similar to Spotify and Apple Music (AAPL).

According to the Fortune report, SoundCloud Go will have a catalog of around 125 million songs compared to a catalog of 30 million songs each for Apple Music and Spotify. SoundCloud Go has its music subscription apps on both Alphabet’s (GOOG) Android and Apple’s iOS devices.

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SoundCloud’s Go service could also compete with Pandora

Pandora Media (P) has a music subscription service, Pandora One, priced at around $5 per month. Pandora already has a 10% market share of the radio listening market in the United States, and the company stated in its fiscal 2015 earnings call that it believes its subscription business will be worth $1.3 billion over the next five years.

SoundCloud Go’s service could put a dent in Pandora’s plans as SoundCloud Go provides an extensive catalog.

Apple makes up 12.1% of the PowerShares QQQ Trust Series 1 ETF (QQQ). If you’re interested in exposure to the television and radio sector, note that QQQ has 4.8% exposure to the sector. QQQ also invests 5.3% of its holdings in Facebook (FB).

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