NEW YORK (TheStreet) -- Pandora Media (P) shares are down -1.3% to $24.70 on Wednesday following the announcement that rival Spotify had reached a subscription milestone, surpassing 10 million paid subscribers worldwide.
The Internet music streaming service announced that it had 10 million paying subscribers and 40 million active users in 56 markets across the world.
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The company allows users to access its music database for free with ads or through a premium service costing $9.99 a month without ads. Paid subscription services were up 57% to $628 million last year while digital downloads decreased 1% to $2.8 billion according to the Recording Industry Association of America.
Pandora CFO Mike Herring declared Pandora king of the digital music streaming mountain at a Bloomberg panel yesterday, despite increased competition from Spotify and a potential Apple (AAPL) and Beats Music collaboration.
Panora's Pandora One ad free subscription service currently has 3.3 million paid users, while 250 million registered users access the free service with advertisements.
TheStreet Ratings team rates PANDORA MEDIA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PANDORA MEDIA INC (P) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."