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Will Apple Music Be Able to Compete with SoundCloud Go?

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The launch of SoundCloud Go

Last month, Fortune reported that SoundCloud was another entrant into the paid subscription-based music streaming market. SoundCloud’s Go service, priced at $9.99 per month, will provide “amateur remixes, but also the artists’ official recordings,” similar to Spotify and Apple Music (AAPL).

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

Radio streaming gains ground

According to the RIAA’s (Recording Industry Association of America) shipment and revenue statistics, streaming services made up 34.3% of total revenues in the US recording industry in 2015. As the above chart shows, paid subscription-based music streaming contributed $1.2 billion to total music streaming revenue in the United States in 2015.

Apple accounts for 15.6% of the Technology Select Sector SPDR ETF (XLK). Other top holdings of the ETF include Microsoft (MSFT) at 10%, Facebook (FB) at 5.6%, and Google (GOOGL) at 5.1%.

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