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iTunes Radio threatens Spotify, not Pandora

3 December 2012 1,901 views 2 Comments

Every time the rumor that Apple plans to launch a streaming music service — call it iRadio or iTunes Radio — Pandora's stock tumbles

Every time the rumor that Apple plans to launch a streaming music service — call it iRadio or iTunes Radio — Pandora’s stock tumbles, hard. However, at least one industry expert thinks that focus is misguided and that Spotify has the most to fear from Apple’s music machinations.

Bloomberg’s Rocco Pendola had a chat with Albert Fried and Company analyst Richard Tullo, who covers Pandora, about who has the most to fear from Apple’s long-rumored iTunes Radio service.

“We think Apple will adopt some Spotify-like features if it can in its iTunes platform as it’s really Spotify which is the direct threat,” says Tullo.

His point being that iTunes and Pandora are compatible services — users can buy iTunes music through Pandora, and the two companies have had a strong relationship for years.

Spotify and iTunes are, however, clearly competitive — people that use one tend not to use the other.

Personally, it wouldn’t surprise me if Apple and Pandora forged a closer alliance, perhaps going so far as to bundle/integrate Pandora with iTunes…

What’s your take?

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