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Rhapsody takes major hit as music services slowly cannibalize each other

I could probably name close to a dozen subscription music services off the top of my head, which means one thing: There are far too many subscription music services. Now, just days since Pandora declared that it would do just fine in the wake of Apple's iTunes Radio debut, longtime music stalwart Rhapsody announced that its revenue is continuing its downward spiral.

Rhapsody sliced roughly 15 percent of its workforce -- including top management positions -- alongside the launch of iTunes Radio in an attempt to remain competitive, but it doesn't appear to have helped. According to a statement from Rhapsody to GeekWire, part of the company's $5.6 million quarterly loss was due to severance packages paid out to departed employees.

But Rhapsody isn't throwing in the towel just yet. The company is reportedly ready to roll out some new features. "You'll also see a lot of innovation coming out of a product road map in the next six months that is not just about the listening experience, but about improving the overall fan experience," the company said. We'll just have to wait and see if it's enough to change the company's fate.

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