Shares of Pandora’s stock are down after news broke that Apple has been quietly speaking with music labels to start its own internet radio service.
And the service is intended to launch soon, too — with an advertising-supported service, much like Pandora, a deal could be reached later next month with service beginning within the first three months of 2013.
When Apple said last month that they’re considering a launch of an online music streaming service, confidence in Pandora plummeted, its shares dropping more than forty percent since then. Apple wants listeners to be able to buy tracks as music streams or re-listen to what they’ve heard previously in playlists that the service has auto-generated.
Judging by that little tidbit of information, it stands to reason that Spotify may be in trouble as well, if Apple were to take the best of both services and combine them into one iOS-native application. Spotify is free with advertisements to use on your computer, but to use the mobile application, you have to pay a subscription fee of $10. (I gladly pay it, now, and I used to pirate a lot of music. I don’t anymore, and I’ve probably paid about $140 for music in the last year. Are you listening, studios?)
Universal Music Group, Warner Music Group Corp and Sony Corporation’s music division all visited Apple’s headquarters to talk about the company’s radio plans, so perhaps they are.
Meanwhile, Pandora’s stock continues to plummet. One wonders if they were hoping to be bought out. Doesn’t look like that’s going to happen.
Question: Would an Apple-run Pandora/Spotify music service appeal to you? Or would you rather keep those apps separate?