Pandora (P) Trudges Higher Amid Increasing Competition (AAPL)
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Pandora Media (NYSE: P) slipped Thursday afternoon following reports the peer Spotify would be launching a mobile music service.
The WSJ said Spotify's app would be ad-free and available on most mobile devices. Previously, the service was only available on desktop and laptop PCs.
Sweden-based Spotify also reached licensing agreements with the top three global music companies -- Sony Music, Universal Music Group, and Warner Music -- sources said.
Formatting for the service would allow users to stream songs to a mobile device, though non-paying users would be limited to number of on-demand choices they would receive. Most songs will play at random based on a users' input, much like what Pandora does.
Spotify last reported having 6 million paying subs and 20 million active users. That compares with 72.4 million active users for Pandora as of November 2013.
It wasn't made immediately clear when Spotify's mobile app would launch.
Given that Pandora has managed to still show solid growth following the launch of Apple's (Nasdaq: AAPL) iTunes Radio in September and that Spotify isn't but one of many looking to enter the global streaming-music market, investors might not flinch too hard at the recent news bit. However, it's still one item to keep on the radar.
Shares of Pandora are up at the start Friday.
The WSJ said Spotify's app would be ad-free and available on most mobile devices. Previously, the service was only available on desktop and laptop PCs.
Sweden-based Spotify also reached licensing agreements with the top three global music companies -- Sony Music, Universal Music Group, and Warner Music -- sources said.
Formatting for the service would allow users to stream songs to a mobile device, though non-paying users would be limited to number of on-demand choices they would receive. Most songs will play at random based on a users' input, much like what Pandora does.
Spotify last reported having 6 million paying subs and 20 million active users. That compares with 72.4 million active users for Pandora as of November 2013.
It wasn't made immediately clear when Spotify's mobile app would launch.
Given that Pandora has managed to still show solid growth following the launch of Apple's (Nasdaq: AAPL) iTunes Radio in September and that Spotify isn't but one of many looking to enter the global streaming-music market, investors might not flinch too hard at the recent news bit. However, it's still one item to keep on the radar.
Shares of Pandora are up at the start Friday.
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