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

Special Needs Kid Is Severely Bullied, Needs Testicle Surgically Removed

Any hope that extreme bullying was going extinct has been shattered by California elementary school kids who beat a mentally disabled boy so severely he needed to have a testicle removed. Josefina Corona told NBC Los Angeles that her 8-year-old son was physically and sexually abused at Miramonte Elementary School from April 2012 until June 2013 when […]

World Emily Arata

It Turns Out That Coffee May Actually Help You Live Longer

Coffee will not stunt your growth. Neither will it kick you into an empty grave, give you cancer or anything else your mother threatened over the years as you poured another cup out of the pot. In fact, Time reported that new research by Dr. Rob van Dam, a nutrition expert at Harvard’s School of […]

World Sean Levinson

Obama Gives Speech To Honor Jim Foley, Promises To Seek Justice On ISIS (Video)

Disclaimer: The above video does not contain any graphic images or footage.  President Obama responded to the death of James Foley with an angry speech, honoring the fallen journalist and assuring his killers will meet their demise. Of the Islamic State, which beheaded the 40-year-old photojournalist in a video uploaded to YouTube, Obama said: People like this […]

Also On Elite

Technology

You Will Be Able To Charge Your Phone By Yelling At It With This New Device

British researchers have developed technology that takes sound from the immediate vicinity and turns it into energy for mobile phones. According to the Daily Mail, a team from Queen Mary University of London was inspired by the discovery that solar cells are strengthened by the sound of loud music. This happens because sound vibrations jump-start […]

Technology

The Future Of Our Country: Georgia Teens Develop App To Challenge Police Abuse

The recent events in Ferguson, MO, have sparked a national discussion about the fragile dynamic between police departments and the communities that officers patrol. From the shooting that led to the initial protests in Ferguson to the way officials have responded, people around the nation are growing concerned about the amount of accountability placed on police […]

World

This Is What It Looks Like To Be Shot With A Rubber Bullet By Ferguson Cops (Photos)

Tensions have thankfully slowed considerably in Ferguson, Missouri, after a violent night of tear gas, rubber bullets and Molotov cocktails. The St. Louis County Police Department quickly resorted to excessive force to disperse protestors of the Michael Brown shooting that resulted in the harm of many nonviolent civilians. One of those people was this pastor who, […]

Sports

Did A Russian WWE Character Make A Reference To MH17 Or Is America Overreacting?

WWE scriptwriters found themselves in hot water this week after Russian character Lana (whose real name is Catherine Joy Perry) went on a rant about American politics. It was a line that alluded to people in this country believing that Russia was involved with the recent Malaysia Airlines tragedy that has people getting upset. You blame […]

Music

This Legend Snuck Into 50 Music Festivals And Filmed An Epic Documentary

Marcus Haney is a badass. You’ve probably never heard of him but he’s a 20-something guy who has broken into a ton of music festivals including Coachella, Bonnaroo and Glastonbury. He even snuck into the Grammys. Now, he’s coming out with a documentary called “No Cameras Allowed” about his wild experiences. Marcus is not just […]