Pandora Media, the largest Internet radio operator, realized a notable fall in its shares this Friday when a report published in the Wall Street Journal revealed that Apple was into the launch of a similar music service.
Pandora is having a market share of more than 72% in online radio with some 6% share of the total radio market. Since its device expands up to more than 400 diverse devices, making it all-pervading. But, the shares came down by 16.8% approximately becoming nearly $10.46 amid Apple's step on the same path.
It has been found that the biggest tech-giant is into a study of launch of a streaming music service that might be able to be pre-installed on iPad as well as iPhone devices. And the same, as per Bank of America Merrill Lynch's Analyst Nat Schindler, is likely to leave Pandora far behind. Pandora gets only a 40-50% usage from its iOS devices.
"Apple is currently the largest music retailer in the world and the move is likely being made to unseat rapidly growing streaming competitors like Pandora and Spotify", said he.
However, Canaccord Genuity's Shawn Rassouli believes that creation of a profitable service is not possible in short term even by Apple. Thus, Pandora needs not worry.
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