Forbes writer thinks an Apple streaming play would hit Pandora in the ad revenue

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Issue Date: 
Feb 25 2013 - 12:00pm

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Apple will hold its annual shareholder meeting on Wednesday, and naturally many are eager to hear the company's plans for a streaming music service. A Forbes writer predicts an Apple entry into streaming music wouldn't hurt SiriusXM, but it would likely take a toll on Pandora.

"The main issue for Pandora is going to be with advertisers," writes Richard Saintvilus. "This is where Apple will bring the most damage."

Apple would give Pandora competition for ad dollars it really doesn't have, and thus give advertisers leverage, which would drive ad rates down. Apple, with so many other revenue streams, could afford a music streaming service as a loss leader. Pandora, obviously, could not.

"This, then, puts Pandora in a position to sacrifice margin for revenue."

Saintvilus' bet is that Pandora gets acquired, by Facebook or Google. Read more in Forbes here.

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Everyone was waiting for that

Everyone was waiting for that big announcement and plan of Apple. The competition had gone very far. - Charles Brennan

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