Pandora (P) Investors Tune Out as Spotify Launches Free App
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Pandora Media (NYSE: P) shares are missing the beat Tuesday following reports U.K. competitor Spotify is aiming to challenge the streaming radio giant in a whole new segment.
Spotify is bringing a free, ad-supported app to Apple's AppStore for use on the iPhone and iPad. Paying users will still be able to listen to streaming content without the ads.
Last week Spotify announced a new app available for Android users for download in the Google (Nasdaq: GOOG) Play store, though that was not a free version.
In addition to being free, users will be able to create stations and listen as long as their ears will let them. The only limit is skipping about six songs every hour. Ads will come from sponsors like Red Stag by Jim Beam (NYSE: BEAM), Heineken, Macy's (NYSE: M), McDonald's (NYSE: MCD), and others.
The free service might be just what Spotify ordered: latest reports from both companies showed Spotify with 10 million users and 3 million paying subs, compared with 150 million users at Pandora.
Pandora shares are off about 3.8 percent Tuesday. Shares are up 10.5 percent since the start of 2012.
Spotify is bringing a free, ad-supported app to Apple's AppStore for use on the iPhone and iPad. Paying users will still be able to listen to streaming content without the ads.
Last week Spotify announced a new app available for Android users for download in the Google (Nasdaq: GOOG) Play store, though that was not a free version.
In addition to being free, users will be able to create stations and listen as long as their ears will let them. The only limit is skipping about six songs every hour. Ads will come from sponsors like Red Stag by Jim Beam (NYSE: BEAM), Heineken, Macy's (NYSE: M), McDonald's (NYSE: MCD), and others.
The free service might be just what Spotify ordered: latest reports from both companies showed Spotify with 10 million users and 3 million paying subs, compared with 150 million users at Pandora.
Pandora shares are off about 3.8 percent Tuesday. Shares are up 10.5 percent since the start of 2012.
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