iTunes Radio is Great Service . . . if it Was Still 2009 (AAPL) (P)
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Price: $117.34 -0.69%
Rating Summary:
10 Buy, 24 Hold, 3 Sell
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Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
10 Buy, 24 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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As anticipated, earlier this week Apple (Nasdaq: AAPL) released its new radio service, iTunes Radio. In the view of analyst Rich Tullo of Albert Fried & Co, Apple missed the mark.
"To be clear, in the absence of AAPL branding the Apple iTunes Radio Platform is a great product for 2009 but we think users have evolved. The current basket of about +20 major emerging and established services fits most user needs in our view," said Tullo. "An iTunes Radio that addresses industry and artist needs could have excited investors but that is not what Apple rolled out. They rolled out a product that was cutting edge in 2009 but Apple has to compete against both Spotify and Pandora and we think the product is uncompetitive on a stand alone basis."
Despite the lack of innovation, Tullo thinks iTunes Radio might be enough slow Pandora (Nasdaq: P) growth.
"We argue this version of iTunes Radio just might be good enough in an environment where Pandora has to cap usage owing to the Sound Exchange Rate card . . . We suspect users will try the service by default and as they say, sometimes success in life is derived from showing up," concluded the analyst.
Albert Fried & Company has a Market Perform rating on Pandora with a price target of $18.00
For an analyst ratings summary and ratings history on Pandora (NYSE: P) click here. For more ratings news on Pandora click here.
Shares of Pandora closed at $15.35 yesterday.
"To be clear, in the absence of AAPL branding the Apple iTunes Radio Platform is a great product for 2009 but we think users have evolved. The current basket of about +20 major emerging and established services fits most user needs in our view," said Tullo. "An iTunes Radio that addresses industry and artist needs could have excited investors but that is not what Apple rolled out. They rolled out a product that was cutting edge in 2009 but Apple has to compete against both Spotify and Pandora and we think the product is uncompetitive on a stand alone basis."
Despite the lack of innovation, Tullo thinks iTunes Radio might be enough slow Pandora (Nasdaq: P) growth.
"We argue this version of iTunes Radio just might be good enough in an environment where Pandora has to cap usage owing to the Sound Exchange Rate card . . . We suspect users will try the service by default and as they say, sometimes success in life is derived from showing up," concluded the analyst.
Albert Fried & Company has a Market Perform rating on Pandora with a price target of $18.00
For an analyst ratings summary and ratings history on Pandora (NYSE: P) click here. For more ratings news on Pandora click here.
Shares of Pandora closed at $15.35 yesterday.
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