Can Apple Revolutionize The Music Industry Again?

24Sep12

Everyday we come into class with Pandora music already playing. This could all be an Apple product in the near future.

With the recent sales of the Iphone 5 overshadowing Apple’s recent press release to begin to stream live music similar to Pandora. Analyst believe this could be a huge revenue generator for Apple in the coming years. The belief is that 40-50% of all Pandora users are already streaming music from an iOS device. This is a growing trend into how music is being heard.

If Apple had its own service in conjunction with ITunes they would be able to have a significant market share. This could be a huge blow for Pandora and to a lesser extent Spotify. After the announcement, the market already began to discount Pandora. As the author noted, Apple will look into how to make their streaming channel more simplistic. They will also likely do something very similar to Pandora to drive Pandora (pay for unlimited service or limit the amount of skips a user can have if they have they choose the free service). Revenue for Pandora has jumped from $55 million in 2010 to an estimated $275 million through the end of July.

Apple is typically able to grab the market share and create user-friendly product, this is sure to be a slam dunk for Apple. This could be the first ‘big’ venture for the company in the Post Steve Jobs era.

Matt Blaszka

http://seekingalpha.com/article/871351-can-apple-revolutionize-the-music-industry-again

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