Mark Ramsey on How Apple Will Fare Against Pandora and Spotify

June 7, 2013

Speculation is already starting about the yet-to-be-announced iRadio from Apple.  This service, expected to be a competitor to Pandora and Spotify, appears to be inevitable at this point, even though it has not formally been announced.  The question is, how will this new service perform in this space?  According to Mark Ramsey, the advantage the Apple inherently has from its iTunes will not necessarily translate into success in this new space.  There are a few reasons for this.  First, the fact that Apple already has iTunes may not be that much of an advantage, since iTunes serves a market of people looking to purchase songs, whereas iRadio will service people looking to listen to a stream of songs.  Second, Pandora and Spotify have an incumbency advantage, where people feel comfortable with their service, and won’t switch unless they have a sudden negative experience with those companies, or the service provided by iRadio blows them out of the water.  Finally, the simplicity of Pandora and Spotify may be more attractive than the complexity of dealing with the entire Apple network.  As a bottom line, an introduction of iRadio will not necessarily harm Pandora and Spotify, but may actually help them as it will give legitimacy to that industry.  For the complete article visit http://www.markramseymedia.com/2013/06/thank-you-apple/

Mark Ramsey Media is one of the best-known research and strategy providers to media companies in America. MRM President Mark Ramsey has worked with several television and innumerable radio broadcasters over his career, including all the biggest names, from Clear Channel, CBS, Bonneville, Sirius XM, and Greater Media in the US to Corus and Astral Media in Canada.  Clients from outside broadcasting have included EA Sports and Apple.

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