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Music streaming service

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Music streaming service

Music streaming services are a type of online streaming media service that focuses primarily on music, and sometimes other forms of digital audio content such as podcasts. These services are usually subscription-based services allowing users to stream digital copyright restricted songs on-demand from a centralized library provided by the service. Some services may offer free tiers with limitations, such as advertising and limits on use. They typically incorporate a recommendation system to help users discover other songs they may enjoy based on their listening history and other factors, as well as the ability to create and share public playlists with other users.

Streaming services saw a significant pace of growth during the 2010s, overtaking online music stores as the largest source of revenue to the United States music industry in 2015, and accounting for a majority since 2016. As a result of their ascendance, streaming services (as well as music-oriented content on video sharing platforms) were incorporated into the methodologies of major record charts; the "album-equivalent unit" was developed as an alternative metric for the consumption of albums, to account for digital music and streaming.

Consumers moving away from traditional physical media towards streaming platforms attributed convenience, variety, and affordability as advantages. On the contrary, streaming has also been criticized for causing performers to earn less from their music and artistry compared to physical formats (which can be as low as one-tenth of a cent per stream).

Digital distribution of music began to achieve prominence in the late 1990s and early 2000s, popularized by websites such as MP3.com and PeopleSound (which allowed musicians to publish tracks online for streaming, download, and/or purchase), as well as file sharing services such as Napster.

In 1999, MP3.com launched "My.MP3.com", a feature which allowed users to rip and upload music files from CDs they owned into a personal library via its "Beam-it" software, which they could then stream via their accounts. In 2000, the service was the subject of a lawsuit by Universal Music Group, UMG Recordings, Inc. v. MP3.com, Inc., which ultimately ruled that the service allowed for the unauthorized distribution of copyrighted sound recordings. Although users were required to acknowledge that they owned the music, it was not practical to verify. The lawsuit proved detrimental to MP3.com: it would be sold to UMG's parent company Vivendi Universal in May 2001, and sold to CNET in November 2003, which shut down its music distribution platform in December 2003.

In December 2001, Rhapsody was launched by the startup Listen.com, becoming the first service to offer subscription-based streaming access to a library of music online. Initially limited to content from independent labels such as Naxos, it later reached agreements to stream music from the "big five" major labels. In 2003, Roxio acquired both the online music store PressPlay and the intellectual property of Napster, and used their assets assets to launch "Napster 2.0"—an online music store and subscription music streaming platform.

Pandora Radio launched in 2005; the service initially allowed users to create and listen to internet radio stations based on categories such as genres, which could then be personalized by giving "thumbs up" and "thumbs down" ratings to songs and artists the user liked or disliked. The service's recommendation engine, the Music Genome Project, analyzes and determines songs based on various traits. Pandora initially operated within the royalty framework enforced by SoundExchange for internet radio in the United States, resulting in operational limitations: users could not choose individual songs to play on-demand, and could only skip a limited number of songs per-hour (although users could later receive more skips by watching video advertisements). In 2008, the company joined with other internet radio companies to protest proposed rate changes by SoundExchange.

Yahoo! acquired Launch Media and its LaunchCast internet radio platform in 2001 amid the dot-com bubble; in 2005, the service evolved into Yahoo Music Unlimited, a subscription service that allowed songs to be streamed in DRM-protected Windows Media Audio (WMA), and purchased for an additional fee.

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