Apple Prepares Pandora Competitor?
Rumor has it that Apple is preparing a new service. After having a look at the success of internet radio and music streaming site Pandora, they might be working on launching a similar product of their own.
People in the know have told the Wall Street Journal that Apple may be cooking up something new. Taking note of the success of internet radio and music streaming sites such as Pandora and Spotify, they might be looking to grab a slice of the pie and enter the market with their own product.
While Pandora has posted impressive revenue growth number since the start, the company has yet to turn a profit which is to be expected. Costs in the form of royalty and licensing are sure to be high in the music business. However, the company with the world's largest market cap could probably negotiate a better deal for themselves, which could spell trouble for other competitors.
Pandora and Spotify are only available in the USA and Europe. If Apple can bring their music streaming service to Asia like they did with the iTunes store, they could get a head start on the rest. As the service has not been confirmed we do not expect any big announcements related to it at the upcoming 12th September 2012 Apple event.
Source: Wall Street Journal via Arstechnica
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