At the WWDC, Apple Inc. (NASDAQ:AAPL) released iTunes Radio with much fanfare from all Apple Inc. (NASDAQ:AAPL) developers and enthusiasts. Apple Inc. (NASDAQ:AAPL) believes that streaming radio will change the way users consume music. Released in iOS7, this streaming music service will be much like Pandora Media Inc (NYSE:P)’s. With Pandora Media Inc (NYSE:P) dominating the market for so many years, attracting a user base of 70.8 million, it seems that Apple Inc. (NASDAQ:AAPL) will have to create a more innovative user experience for users to adopt this streaming service. Listener hours hit 1.35 billion for May, a 22% increase for the same quarter last year. Pandora Media Inc (NYSE:P) reported $125.5 million in revenue for the quarter, a 55% year-over-year increase.
With Pandora Media Inc (NYSE:P) capturing so much of the market, Apple Inc. (NASDAQ:AAPL) will not only have to sing the Apple Inc. (NASDAQ:AAPL) song, which resonates with its core customer base, but provide a user experience that goes above and beyond Pandora Media Inc (NYSE:P)’s. With over 51% of households owning an Apple product, adoption rates might be what drives this new product to overtake Pandora Media Inc (NYSE:P)’s market share.
The Foolish Bottom Line
With new and innovative technology consuming the streaming space, its fair to say that whoever reaches the consumer most effortlessly wins. Pandora has a huge chunk of the market share, however with a huge fan base and a company culture designed around innovation, Apple is poised to take over the streaming music business as long as users adopt the newest fad in the product line.
The article Entertainment Revolutionized; Streaming Media in the Age of Digital originally appeared on Fool.com and is written by Kaitlyn Tokay.
Kaitlyn Tokay has no position in any stocks mentioned. The Motley Fool recommends Apple and Walt Disney (NYSE:DIS). The Motley Fool owns shares of Apple and Walt Disney. Kaitlyn is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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