Analysts had underestimated Apple’s attempt to join the music streaming industry by launching Apple iTunes Radio. A recent report says that iTunes Radio has already reached over 11 million listeners on its first five days and may beat Pandora in 30 days at that pace.
The reported numbers by Apple is approximately four times the running figures of the music streaming pioneer Rhapsody which has reached 2.89 million since its launch in 2001, according to Internet marketing research company ComScore.
The iTunes Radio has been compared to Pandora which is currently the most successful music streaming service which currently has 64.9 million active listeners since its 2005 launch. Given Apple’s current pace, it is very likely that it can beat Pandora in 30 days.
Other music streaming services are Spotify with 20.2 million listeners, iHeartRadio with 14.4 million, and Slacker with 4.5 million active listeners.
Pandora Media Inc.dived 10 percent closing at $24.26 per share on Monday while Apple jumped by five percent closing $490.64 each share.
A spokesperson for Pandora refused to make a statement regarding the share prices or the listener numbers of Apple when interviewed by CNet. However, she expressed that Pandora consider the iTunes Radio launch as a positive thing as it will introduce new developments in the industry of internet radio in general.
Chief executive of Slacker Jim Cady has the same attitude when asked about iTunes Radio. He said, "Overall having [Apple] come out with a radio solution is good for the marketplace. They will educate the market." He further adds that Slacker could now focus on “on building a better solution and not on market education.”
It may be too early to predict the success of the Apple iTunes Radio or whether it can really beat Pandora. While the stocks dropped by 10 percent, it is not considered a big loss as Pandora had a 57 percent leap when Apple announced its plan to launch iTunes Radio.
