This document analyzes the music streaming industry. It finds that the industry is experiencing high growth of 45% annually but also consolidation between music and video streaming companies. While the long term outlook is positive, profitability is currently low. The five forces model is applied which finds medium competition but high barriers to entry. Key trends include the importance of catalog size and complementary internet infrastructure. A firm analysis of Netflix finds strengths in its first mover advantage, exclusive contracts, and original productions. A recommendation is made for Netflix to acquire Deezer to exploit synergies and strengthen its position in the industry.