In a strange, but not entirely unexpected turn of events, Pandora has actually seen significant growth since the launch of iTunes Radio in September. Bloomberg reports that Pandora’s market share of radio listeners has increased from 7.77% to 8.06% in the time that iTunes Radio has been operational. According to Pandora CFO Michael Herring, listening hours on Pandora have increased by 9% as well. That brings total streaming content on Pandora to 1.47 billion hours in the month of October as iTunes Radio users migrate back. Despite this growth, the number of active users actually shrank slightly last month, from 72.7 million to 70.9 million. 9to5Mac points out that Pandora did finally drop the 40-hour monthly listening limit for free users in September, which certainly accounted for some of the growth. Whatever the cause, increased market share for Pandora is not good news for the long-term prospects of iTunes Radio.
When Apple first announced iTunes Radio, many people assumed that the inclusion of a full-fledged streaming service within the most popular music store on the planet would be the death knell for Pandora and other similar services. It turns out that might not be the case, as Apple Insider shares a survey from Canaccord Genuity that found only 8% of users who had tried iTunes Radio stopped using Pandora altogether. Analyst Michael Graham believes that “Pandora’s October monthly listener metrics are unlikely to be materially impacted by iTunes Radio, creating a potential positive near-term catalyst.” More →
iTunes Radio launched alongside iOS 7 last week, but the service is currently only accessible to iTunes users within the United States. But for users outside of America, BGR sister site BGR India has found a way to enable iTunes Radio on any iOS device regardless of what country you are in. In just a few simple steps, anyone can trick iTunes into thinking that he or she is a U.S. account holder, granting unlimited free access to iTunes Radio. Details on how to perform the trick can be found on BGR India, and there’s no telling how long it will work before Apple blocks it, so those interested in checking out the service should probably act fast.
When Apple was engaged in long, protracted negotiations with record companies over terms for its iTunes Radio service, many assumed that the company was trying to get copyright owners to take less money per song play than competing Internet radio service Pandora. The Wall Street Journal reports that this is not the case, however, because Apple is paying out $0.13 per song play, or 1 cent more than what Pandora pays out. In addition to royalties paid per song played, Apple is also dishing out 15% of its advertising revenue over the first year of its contract and will bump that number up to 19% of advertising revenue in the second year of the deal. The Journal also says that Apple is also “offering music publishers more than twice as much in royalties than Pandora does,” so it seems that iTunes Radio has the potential to be much more lucrative for record companies going forward.
Rumors surrounding Apple’s streaming music service had been swirling for years — not months, but years — and now we can finally put them all to bed. The company on Monday took the wraps off of iTunes Radio during this year’s WWDC keynote, and the new service definitely sports a solid feature set. iTunes Radio is integrated into Apple’s Music app, providing curated streaming radio stations and custom stations that improve as you listen and download new music. And now that the service is finally official and we know all there is to know, it’s finally time to start your Google Play Music All Access trial. More →
After months of contract negotiations with record labels, Apple has finally announced its Pandora-killing music app called iTunes Radio. The new music service will be built into the official iOS Music app. Much like Pandora, iTunes Radio lets you create your own music stations simply by typing in names of artists. While you’re listening to a song that you like, you can make it a favorite by clicking a star icon and iTunes Radio will start playing more songs like it. iTunes Radio will be free and supported by ads although users can get an ad-free version of iTunes radio if they’re already subscribers to iTunes Match. Apple says that the new service will launch first in the United States before expanding to other countries.