Pandora’s stock has fallen nearly 6% so far this week and investors seem to be nervous that Apple’s new music subscription service could steal away Pandora customers.
The maker of iEverything unveiled Apple Music on Monday at its Worldwide Developers Conference. Apple Music will cost $9.99 a month, but Apple is offering a free trial for three months.
That’s probably enough time for Apple to prove to music fans that its premium service is worth paying for even though Pandora offers Internet radio for free. With ads of course. (Pandora also has a subscription service with no ads.)
Apple didn’t mention Pandora by name on Monday but it appeared to take some jabs at the way the company programs its stations.
Apple executives, most notably Beats co-founder Jimmy Iovine, talked about how music was more about a human touch than algorithms.
Pandora CFO Mike Herring disputed the notion that the company’s service is just about a bunch of bots.
“Humans are extremely important to the personalized experience Pandora provides,” he said in an e-mail. He added that the company has a team of more than 80 analysts, curators and scientists with a musical background.
“This team, combined with our technology, helps Pandora deliver a simple, personalized music experience that is unparalleled,” he said.
So will Pandora really get crushed by Apple? We’ve been here before.
Pandora faces the music as Apple, Spotify are big threats – Jun. 10, 2015