I don't think its a question of whether or not consumers like the service especially when its free to them. I personally use the free version all the time.
Its a question of whether this company can ever be profitable enough to justify the current valuation. With the royalty structure, economics of the current ad model. and lack of barriers to entry, it doesn't look good right now. It certainly makes the stock even at today's prices highly speculative.
If the price got punished enough I would buy some stock for speculation. But I would like to see it closer to the $3 or $4 range before I would make that bet.