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Originally posted by feuxtography
Don't know how I feel about this. I didn't think Pandora was that big of a market competition...
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From the
Wall Street Journal:
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Going head-to-head with Pandora pits Apple against one of the only other companies to gain real consumer traction in online music. According to a recent consumer survey by Nielsen Co., more adults said they use Pandora to listen to music than Apple's iTunes.
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Apple has dominated the sale of song downloads since 2003 when it launched what was then the iTunes Music Store. It has since become the largest music retailer, physical or digital, in the world. But if services like Pandora and Spotify gain popularity, Apple could lose its edge.
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Apple is the world largest music retailer, guess who is #2?
Spotify.
http://www.businessinsider.com/spoti...-labels-2012-6
Spotify Is Now The Second Biggest Source Of Revenue For Labels
Apple should go after Spotify, not Pandora. Spotify is a much more direct competitor. Pandora is passive. Spotify is "on-demand" which mean it can be used as a substitute to buying songs on Itunes. Why use $10 to buy 7-8 songs a month on Itunes when that same $10 can get you millions of songs on Spotify?
And Spotify has been growing like crazy. See below:
January, 2010:------------ 250,000 paid subscribers
March 17, 2010:----------- 320,000
July 20, 2010: ---------------- 500,000
December 8, 2010: ------ 750,000
March 8, 2011:--------------- 1,000,000
July 14, 2011: -----------------1,600,000
Sept 21, 2011: ---------------- 2,000,000
Nov 23, 2011: ------------------2,500,000
Jan 26, 2012: -------------------3,000,000
July 31, 2012:--------------------4,000,000 paid subscribers
Spotify Revenue:
2008: $0.612 million USD
2009: $18.1 million USD
2010: $99 million USD
2011: $236.4 million USD
2012: projected at $889 million USD
