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Apple’s Pandora-Killing Music-Streaming Clone
Apple may generate a free music-streaming service, like Pandora, in order to, “keep people within the iTunes environment” (Jim Edwards). Apple has realized that streaming music from Pandora affects time and money not spent on iTunes. According to eMarketer, Pandora’s mobile ad business is second in size only to Google’s. Although, it’s not crystal clear that Apple would want to take on a competing mobile ad business such as Pandora’s.
This story caught my attention because I love Apple, and I’m also an advertising major. So, when I saw the title “Why Apple Wants to Kill the Biggest Mobile Ad Business on the Planet”, I was intrigued.
Free music-streaming generates zero money unless you have ad agencies, or companies, who pay for space to place their ads. When it comes to mobile advertising, the amount of money spent is around $20 billion, according to marketingland.com. This is why it would be a smart move for Apple to create their own music-streaming platform in order to generate traffic away from Pandora to iTunes for sales opportunities, while making a little extra cash on the side with the forecasted mobile ad spending possibilities.
Apple already has very advanced technology and is practically taking over the world, so to speak. Therefore, creating a free music-streaming service would be beneficial to the company. I don’t think they would take a loss in revenue, even with the service being free. If anything, they would attract more people to the iTunes store if their in-house advertising sector, iAd, does a good job on honing in on advancing mobile technology. It seems like a win-win opportunity, especially if they are doing their own advertising.