Having Apple compete is a GOOD thing! Reason: Lobbying power
Would love to see Apple on Pandora's side..helping to lobby congress for better/fairer royalty rates for internet radio. Makes the likelihood of a positive outcome more likely. And with that positive outcome Pandora will rocket....whether or not Apple is a competitor.
I sold today at $7.8. Maybe it will rise again in the coming days. But in the long run, I see it as game over.
Maybe the radio fairness bill will pass, maybe not. Those in the know have given it just a 3% chance of passage. Even if it passes Pandora will have a tough job growing with an apple or Win8 icon on your device. This will devolve into managing the decline and hoping for a buyout.
While I think that the radio fairness bill should be passed don't underestimate the influence of the artists, especially on democrats in the senate who will pit this as Wall Street shareholders vs poor starving artists.
Just my worthless opinion
APPL will blaze its own trail and I highly doubt they will be interested in joining any coalition regardless of how it may positively impact their cost structure. Remember, APPL will likely sell iTunes from the streaming service so content acquisition costs are not as paramount for them. I expect their costs to end up somewhere 1/2 between where Pandora and Siri sit now just because they are Apple and can negotiate as a behemoth.
With that being said, this is NOT a game killer for Pandora. It will FORCE AMZN, GOOG and others to kick the tires and see if they can leverage P to compete with AAPL. In the meantime, P will do just fine albeit with a "omg the sky will fall any second" weight around its neck.
shows how much you understand the market. AAPL is going to negotiate rates directly (which its doing right now) with the record label companies and avoid the legislative royalty rates. And leave the likes of P sniffing the air behind.