Boston, MA 10/29/2013 (wallstreetpr) – The promising online music business has seen many cash-rich companies seeking a share of Pandora Media Inc (NYSE:P)’s primary business segment – internet radio service. Now Pandora, the leader in internet radio business, is facing growing competition from the cash-fat giants such as Apple Inc. with its iTunes Radio, Google which is said to be preparing its plunge through YouTube and Microsoft with its Xbox Music. Many other startups are also up to get a slice of this seemingly lucrative business. The primary target of any new entrants in the internet radio service is to diminish Pandora numbers as they grow their own.
However, Pandora is not taking all this competition lying down. The company has strategies to grow its active listener base. In August, the company announced addition of 25% to its active listeners count to hit 72.7 million. Pandora also announced serving 1.36 billion hours to its listeners, indicating a rise of 18%.
But even as figures indicate a stronger Pandora in the internet radio business, the question has always been how long it can last in the growing competition. Looking at the company, it has adequate opportunities and strength to turn itself into the king of online radio service business, just like Netflix has done it in the online video business. However, it can also fall to its rivals Microsoft, Google, Apple and others who are aggressively seeking to topple it.
The fact that the big news about Apple’s planned launch of iTunes Radio didn’t sent Pandora hurting in the penny share region, instead managing a rise 231% against Apple’s 32% in the NASDAQ validates Pandora’s strong standing against its main rival. This is why, even six weeks after the launch of iTunes Radio, Pandora hasn’t seen a big bleeding in its share value.
However, Apple is a dangerous competitor that cannot be taken lightly, this is why Pandora is rolling out a spirited strategy to grow its ad, more so in mobile where it has the highest listener contact. For this reason, heavy-weight investors like Carl Icahn are said to be eyeing Pandora for investment, thus validating the company’s strong position.
