Pandora Media Inc (P), Sirius XM Radio Inc (SIRI): The Future of Streaming Music

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The company is also working on strengthening the most vital part of its business, its partnerships with the automotive industry, and has recently signed partnerships with several thousand used car dealerships. It’s clear that the near-term success of the company relies heavily on the success of the automotive industry – this is a leading reason why the stock should be avoided at this time. While it seems cheap at $3.24 per share, company management has given investors no good reason to believe that the company will break out with any groundbreaking innovation.

Apple Inc. (NASDAQ:AAPL) adds to Pandora’s short case

Pandora, Sirius XM Radio Inc (NASDAQ:SIRI), and the rest of the streaming music companies are tied to Apple Inc. (NASDAQ:AAPL), now that it has an internet radio service. In addition, iTunes is rapidly gaining in the listener market at the expense of internet and streaming music companies. Apple Inc. (NASDAQ:AAPL) unveiled iTunes Radio at its Worldwide Developers Conference. A few key points emerged: 1) iRadio will be completely free; thus competing with Pandora directly by going after free subscribers. 2) iRadio will be built directly into the iOS7 software update that will be rolled out to users this fall and 3) the company already has contracts with major automakers, an additional negative for Sirius XM.

At this point, it would be difficult to pinpoint exactly whether or not Apple Inc. (NASDAQ:AAPL)’s iRadio initiative will succeed or fail. But the rapid pace and aggressiveness with which Apple Inc. (NASDAQ:AAPL) is going after the music industry gives investors an even better reason to short sell Pandora.


Colin Tweel has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.
Colin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Future of Streaming Music originally appeared on Fool.com is written by Colin Tweel.

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