Pandora Media Inc (NYSE:P) and iTunes all tuned-up for a fight
Of late, numerous famous musicians such as Pink Floyd’s members and Radiohead’s Thom Yorke have dragged Pandora Media Inc (NYSE:P) into the spotlight for all the wrong reasons. They have been dissenting about how little money they make from internet radio-streaming platforms like Pandora and Spotify.
What generally gets overlooked is that these companies are not raking in big dollars either. More often than not, music streaming companies end up losing money one way or the other. Contrastingly, investors and analysts always believe that these companies have the potential for profitability and growth, in the long run. And what has now dragged Pandora back into the ring is the fact that the technology biggie, Apple has stormed into the music streaming scene and seems to want to make an impact in a big way.
All tuned up
Apple’s iTunes Radio launched with much fanfare a short while ago and is threatening to steal the limelight from P. This is Apple’s first advent into the music streaming space. After a beta release, it might just get a national U.S launch by September. This will definitely add some frownlines to Pandora and Spotify’s foreheads. Interestingly, there is more than one reason for this worry.
The old against the new
Apple is the largest music retailer in the world and the tech giant is aiming at establishing streaming-services that are totally different from what they have already been offering. To date, the company has been happy with selling albums and digital tracks to its customers. The music streaming space is becoming increasingly crowded with listeners nowadays and Apple wants to walk away with some of that audience.
Pandora has been able to carve a niche in this segment, very successfully over the past few years. The company’s internet radio service is powered by vast amounts of data that they collect about their user’s listening habits.