Money is pouring into music-streaming services—but very little in the way of profits is streaming out.
One example of how hard it is to value music streaming—and make a sustainable business from it—concerns Pandora Media. Yet to report an annual profit, its value soared from about $2.6 billion at its initial public offering in 2011 to almost $8 billion in 2014. It is now worth $3.7 billion.