Music October, 31 2012

Apple Streaming-Radio Service Coming Soon, Will Compete with Pandora

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Apple has reportedly intensified talks with major music labels regarding an interest in starting an advertising supported streaming-radio competitor to Pandora, by early next year.

In order to challenge Pandora, Apple is seeking licensing deals that allow more flexibility for listeners since Pandora currently relies on a “compulsory license” that limits it’s listeners. Apple is also pushing for earlier access to new releases.

“Radio is a natural step for Apple,” Rich Greenfield, an analyst with BTIG LLC, told Bloomberg. “This helps Apple dominate in cars, where people listen to an average of two hours of radio a day.”

Greenfield went on to add, “If Apple offers a radio product, it will be far superior to anything else on the market. They’re seeking direct licenses to avoid all the restrictions that come with a compulsory license.”

What are your thoughts on Apple’s latest move? Could you see yourself dropping Pandora for Apple’s streaming-radio play?