When iTunes Radio first came on the scene, the idea was that it would be Pandora’s direct competitor. We are talking Apple after all, so Pandora should have been scared. Well, now, a few months later, it looks like iTunes Radio may be helping Pandora rather than hurting it.
Reports claim that only a small percentage of Pandora users have decided to leave Pandora for iTunes Radio. We also have a new report, that shows that Pandora’s subscriber base has actually increased since iTunes Radio launched. The info comes from Mike Herring, Pandora’s CFO, who claims that Pandora has seen an increase in subscribers by as much as 9%.
So it looks like Pandora is actually benefiting here. Now, keep in mind that this might not have anything to do with iTunes Radio. There is also the factor of Pandora deciding to drop its time-limited listening restrictions. We can see how that would gain them listeners. Also, Pandora is available on both iOS and Android, so that helps.
Either way, iTunes Radio doesn’t seem to be hurting them much. It will be interesting to see where the numbers are at a few months from now. We will keep on eye on this for you.
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