Apple To Crush Pandora After Occupying Wall Street

Apple To Crush Pandora After Occupying Wall Street
News
Like Us On Facebook
Like Us On Facebook

Pandora (P) bearishness, like so many unfortunate Internet memes, continues to take on a life of its own. Each day, multiple times, the same article gets written.

They tend to follow a series of simplistic, chewed up, not properly digested and spit out themes that focus on barriers to entry, competition, profitability and royalty rates in the Internet radio space.

Often, authors of these stories fail to get their facts straight.

We all make factual errors from time to time. That’s expected. It comes with the territory, and is totally human. But there’s just some stuff that’s unacceptable.

Consider this Seeking Alpha article written by somebody named “Henry Stokman.”

In Can Apple Revolutionize The Music Industry Again?, Stokman writes: “All of this iPhone hype has overshadowed a press release that Apple made two weeks ago stating that the company intends to set up a music streaming site similar to that of Pandora.”

Later, Stokman refers to Apple’s “announcement” as “really” having “said very little.”

It said “very little” because no press release or announcement from Apple (AAPL) actually exists on the matter. A report in The Wall Street Journal stoked a rumor that Apple is in talks with music industry representatives and might start a Pandora-like service.

Stokman’s phantom press release reference comes on the heels of other bearish takes with titles ranging fromPandora Facing Potential Apple Competition to Buying Pandora is a Big Mistake to my favorite, Pandora to Get Destroyed By Apple Radio.

The reports of Pandora’s death have been greatly exaggerated.

Channeling more Mark Twain, here’s one for Stokman: Get your facts first, then you can distort them as you please.

Bearishness, even blatant inaccuracies, all of this noise, whether from professional analysts such as Richard Greenfield at BTIG Media or elsewhere, has provided Pandora bulls with ample buying opportunities under $10 per share. So, in that respect, it’s all good.

At some point, however, somebody has to call the perps out for their inanity.

Consider the notion of Apple “revolutionizing” the music industry.

I have as much respect for Apple, if not more, as the next guy, but, copying Pandora hardly qualifies as revolutionary.

As I pointed out in the above-cited article, the biggest threat Pandora faces is removal from Apple’s iPhone. In that piece, however, I discuss obvious reasons why it’s highly unlikely that Apple would banish Pandora or any other streaming music service from its platform.

It makes no sense for Apple to squash one of the things that works so well for iPhone and iPad users — the relationships they have forged with apps such as Pandora, SpotifySlacker and Songza.

Speaking directly to the tired old competition and barriers to entry arguments …

First, an Apple streaming service alongside other music apps or via iTunes does not kill the other apps.

While not quite the Pandora knockoff the Journalspeculates about, iTunes already contains features, such as Genius and iTunes DJ, that offer personalization, though not nearly as sophisticated as Pandora’s Music Genome Project. For as long as I remember, iTunes has provided access to live radio across formats and geographies.

You cannot simply flip a switch and replicate what Pandora has built over the last decade. Apple knows this. And if Tim Cook disrespects it, he’s making a miscalculation Steve Jobs likely would have never entertained.

Second, and maybe most important, Pandora generates revenue by eating away at terrestrial radio’s $16 billion advertising market. It executes what amounts to a traditional radio sales model — agency sales, resellers and actual living breathing humans meeting, face-to-face, with local businesses across the country.

It requires infrastructure and a considerable investment/commitment to build out that infrastructure. Obviously, Apple is more than capable of doing this. And the cash required presents no problem. That said, to offset Pandora’s first mover advantage it takes time I am not sure Apple wants to invest in a business that would barely register on its quarterly report.

AAPL is on a roll. I can’t keep my kid off of her iPad or iPod Touch. I sleep next to my Macbook Pro with Retina Display. And I am one of millions waiting for iPhone 5 to arrive. With the stock crossing $700 in Monday’s after hours trading, Apple is about to Occupy Wall Street.

Let’s keep things in context, though.

Most of all, don’t put words into Apple’s mouth. If they have something to announce, they’ll have an event or issue an official press release.

via The Street

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

More In News

World Sean Levinson

Blackmailers Threaten To Unleash Ebola If They Don’t Receive Ransom

The Czech government has received emails from people threatening to infect the public with Ebola unless a ransom of one million euros in Bitcoin is paid. The anonymous blackmailers claim to have obtained the virus from Liberia and warn that if their demands aren’t met, Ebola will be unleashed in Prague and then to the rest […]

World Gillian Fuller

Heart-Shaped Cloud Floats Above Bride And Groom At The Altar (Photo)

Noticing a heart-shaped cloud floating above you and your significant other on your wedding day is probably a good sign for what’s to come in the years ahead. So congratulations are definitely in order for John and Jessica Hardesty because on their wedding day, that’s exactly what happened. The outdoor ceremony, held in Idaho, took […]

World Adam Pliskin

Twins Spend $20K On Plastic Surgery To Make Sure They Stay Identical

Twin sisters Sara and Emma Koponen do everything together. They work out together. They eat together. They have even had identical plastic surgeries. The Swedish sisters are 25 years old and have spent over $20,000 on plastic surgery in order to change their bodies while looking exactly the same. They’ve had three boob jobs a […]

World Sean Levinson

People In Africa Are Being Urged To Use An Actual ‘Ebola Handshake’

The United States Ambassador to the UN, Samantha Power, has revealed what is now known as the “Ebola handshake,” displaying how anyone in the countries most affected by the outbreak should greet each other. Among those she’s demonstrated the new greeting with, Power touched elbows with Liberian President Ellen Johnson Sirleaf at a press conference on Tuesday. […]

Also On Elite

Goods

Your Smartphone Can Help Make Your Halloween Costume Even Scarier (Video)

Technology is a beautiful thing. As a matter of fact, the only time it might be considered ugly is when you’re using your iPhone to simulate a twitching eyeball for this year’s Halloween costume. No, seriously, you can now use your smartphone as a costume accessory, and it’s actually pretty awesome. In a recent video […]

TV

Tyra Banks Shut Down A Homophobic Comment In The Best Way Possible (Video)

Apparently, Tyra Banks is still a person with a TV show and has some say in the cultural conversation. Normally, I would say that’s probably not a good thing, but this time, Tyra actually said something commendable. On an episode of “America’s Next Top Model,” one contestant made a questionable homophobic remark about another. And […]

Humor

Terrible Friends Throw Passed Out Roommate Off Balcony To Wake Him Up (Video)

There’s something about Australia that makes it seem like its citizens are enjoying life so much more than everyone else, and I consider myself a fan of most of the antics that come out of everybody’s favorite former penal colony. With that being said, I tend to get the impression that Australians have trouble knowing […]

Women

Don’t Hide Your Real Face: 10 Reasons Why You Should Wear Less Makeup

Why do you wear makeup? I wear it to enhance my appearance and to feel pretty. I wear it to not look dead. Some girls wear it because it’s fun, because it attracts the boys, because it plays up specific features. I usually wear concealer, powder, eyeshadow, eyeliner, mascara and some eyebrow pencil. This isn’t […]