Pandora vs. iTunes Radio, who will win?
Tom Dougherty, CEO – Stealing Share
20 November 2013
Predictions of the demise of Pandora were premature
Who do you listen to: iTunes Radio, Pandora or Spotify?
Here’s my guess: You listen to a mix of all of them.
The launch of iTunes Radio more than a month ago produced calls for the demise of Pandora, simply because everything Apple touches is magic and it would have an captive audience that runs its iOS7 software.
“When it comes to consumer-oriented service technology like this, users are usually not wedded to just one. We live in a world in which choice rules the day.”
My feeling all along as been that Pandora (and, to a lesser extent, Spotify) would weather the storm. That’s because those online radio applications are much like the streaming services on your TV. Netflix may be the leader, but I’ll bet many of you also have Hulu Plus and Amazon Instant Video. (Not to mention the TV networks’ own apps, such as HBO GO.)
So far, that theory has been proven to be true. Pandora reported an increase in revenue of 51% with market share increasing from 6.6% to 8.06% in radio.
But, when it comes to consumer-oriented service technology like this, users are usually not wedded to just one. We live in a world in which choice rules the day.
The real competition for Pandora and iTunes Radio is not each other. It’s all the other ways in which we listen to music. Whether it’s downloading a song, listening to a local radio station or even playing a CD (does anyone do that anymore?), the online services have greater inroads to make than simply taking away each other’s customers.
There will be continued shifting, however, that may produce a new market leader. My point is that the predictions of Pandora’s demise are shortsighted. The world is wide open – as long as the brands themselves remain meaningful and relevant. Pandora and Apple are, which means the grab for market share is a long-term affair.
Ford Advertising Tom Dougherty, CEO - Stealing Share 23 April 2018 Ford advertising. Find someone new. News that Ford advertising might be leaving advertising giant WPP rocks the advertising world. However, the agency with 49 offices across the world will be allowed...
Sheetz MTO Tom Dougherty, CEO - Stealing Share 19 April 2018 Sheetz MTO process remains sloooooooow I lay it on pretty thick in a post on Sheetz some years ago. For purposes here, I am rescinding a portion of my prior analysis, yet offer up a new critique. You see,...
Amazon Best Buy Tom Dougherty, CEO - Stealing Share 18 April 2018 Who wins the Amazon Best Buy partnership? The recently announced Amazon Best Buy partnership is not the kind of partnership where Best Buy is opening a store within a store on Amazon. Rather, this is a...