Shares of Pandora Media Inc tumbled more than 17 percent on
Friday as investors feared that Apple Inc would start a competing streaming
radio service, people at Reuters told us.
Apple is in talks with record labels to license music for a service that
would play songs based on a similar genre or artist, according to a report in
the Wall Street Journal, which cited sources close to the matter.
Apple already has a stronghold in music through its iTunes
store. "They are the biggest threat
out there," said Capstone Investments analyst Rory Maher. Pandora is a popular online streaming music
service that makes most of its money through advertising. But there are host of
competitors, including Clear Channel, Sirius XM Radio and Spotify.
Apple initiated talks for licenses with record companies
only recently, and it could be months before an ad-supported service is
launched…..
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