With a recent rumor running strong, it seems that the domination of Pandora, the world’s largest FM station may be numbered. It all started last week when CNET reported that Apple is rolling its sleeves to finally launch their own streaming radio service, aptly named as “iRadio”.
The source also reported that Apple is working fast with an aim to likely announce the new service probably on the WWDC, their annual developer’s conference next summer. So to have all the contracts lined up and signed within the time Apple is said to have a busy time wrapping up their deals with the record labels which they termed as “sweeter” than any agreement penned with Pandora so far.
But as the rumor goes, how far iRadio can affect Pandora will be a subject of study and speculations. Because now Pandora, established back in 2005 has grown up to a huge enterprise in all these seven years. The sprawling FM station now has its branches spread across not only a website and mobile devices but in automobiles, televisions and home entertainment units too.
No wonder they can boast on their blog mentioning the vast number of its listeners which has touched 200 million and still growing. And Pandora has been busy to providing the best service to its listeners. As a matter of fact, the station has been streaming more than 200 million songs every day and that too before 10AM. This calculation shows an unbelievable streaming of 8,000 songs per second. The company also has achieved the astounding feat of squeezing 170,510 years’ worth of music only in this March that can be summed as 1.5 billion hours of streaming music.
Still this is all business and Apple had been heard of negotiating deals on the Cost of License. The interesting part is that whatever Pandora pays for streaming 100 tracks, news spilled that Apple wants to pay six cents per 100 tracks streamed which is almost half of what Pandora pays now to the industry executives. So whether Apple wins the deal and starts a bad era for Pandora just the way Pandora’s stock nose-dived at the mere news of a probable iRadio coming soon or it can somehow avoid a possible bad phase and as strong as ever; only time can tell.
FROM: Red Orbit