everything iTunes should be, but isn't. Simple as that. While they're competitive, Pandora and Spotify are absolutely complementary. Both can and will endure over the long haul. Pandora pays for most of its music through a regulated arrangement with the Copyright Royalty Board, also known as "compulsory licensing." Spotify uses direct licensing, much like the way Netflix ( NFLX) buys its content. In other words, Spotify negotiates separate deals with music labels, etc. Both models -- from a cost standpoint -- stink. That's why it might be time for Pandora and Spotify to bury their subtle hatchet and talk partnership, if not merger. Both companies -- though to a greater extent, Pandora -- have gained and continue to gain serious leverage. There's no question the content owners have control, simply because they own and control the content. They have done an excellent, even if inaccurate, job of controlling the conversation.