Apple’s iTunes Radio has had an immediate affect on Pandora, according to Bloomberg. Following iTunes Radio’s introduction in iOS 7 last week, Pandora’s stock has dipped 10 percent to $24.26 at close in New York, possibly hinting at what’s to come. Could this be the beginning of the end for Pandora? Unlikely, but it clearly shows that Apple’s take on streaming radio, which came preinstalled on every single one of those 9 million iPhones sold this past weekend, is a force to be reckoned with. Not to mention 200 million iOS devices have already downloaded iOS 7.
Pandora shares have actually doubled this year, even with Spotify and Google’s All Access gaining in popularity; there’s no denying the company’s immense mindshare in the mobile market. But with iTunes Radio now in the equation, things could turn ugly as each service vies for listener attention. Apple’s new service has reportedly attracted more than 11 million unique listeners since launching, and it hasn’t event been widely available for an entire week. It’ll just be a matter of maintaining that level of interest that will decide which way each service goes.
Source: Bloomberg