Apple is looking to expand its service range and has recently announced that it intends to design a radio-based service very similar to the popular Pandora. The new service will apparently work with every Apple device and will in all probability function the same as Pandora does. Users will be able to choose their desired musician and will be indicated towards stations that play similar artists.
At the moment Pandora is doing a good job at covering the demand for music software, but Apple is a powerful company with a lot of followers, not to mention an impressive hardware portfolio and an already established music presence on the Internet. Cupertino apparently holds enough assets to manage to squeeze in the market. The Wall Street Journal mentions that Apple intends to make the service an ad-supported one.
The question remains why would Apple want to jump into this business especially since Pandora has been having a tough time making profit for years now? Thatís because every time somebody plays a song on Pandora, the company must pay the companies holding the copyrights to the music. Thatís why Apple is looking to find some gentler rules that would allow at least for a song to be played on repeat. Also Apple has another ace up its sleeve, it has iAd, therefore it will certainly do a much better job at selling ads.
Having its own music streaming service seems like a good idea for Apple, who might be faced with the possibility of seeing iPhone and iPad users flee to the enemy camp.
Source: Apple Seeks to Create Pandora Rival - WSJ.com