How Big of a Hit Is iTunes' Expansion to Pandora?

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Oct. 8 (Bloomberg) -- Apple plans to expand iTunes Radio to English-speaking countries outside the U.S. by early 2014, beating industry leader Pandora to the U.K. and Canada, people with knowledge of the situation said. Jon Erlichman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

How is apple able to do it but not pandora?

There are a couple of factors in there.

Part of it has to do with licensing deals.

Before the break, you're talking about a hardware story.

Here is the software story.

When apple unveiled its new ios 7 operating system, they announced the introduction of itunes radio.

You were talking about a very aggressive rollout of that service in other countries.

Canada, australia, the u.k., new zealand, the nordic region.

Some great reporting by bloomberg news reporters.

This is similar to what we have seen from apple in the past, especially with itunes more than a decade ago, to really get into a lot of countries quickly, something they are potentially able to do because of their dealing specifically with the music labels.

Eddy cue, the executive at apple, was talking about getting service into upwards of 100 countries.

There really is this need for apple to continuously introduce new products, but also new offerings to go along with these products.

Maybe when apple holds its next event, they will give an update on how many people are using it within the first five days of itunes radio being watched.

They said 11 million listeners have given it a try.

Pandora has actually dropped almost 12% over the last couple of days.

How big a hit is this for pandora?

I'm sure you could factor some of this news to the stock price decline.

There were a number of tech stocks that were down today.

There are two views to look at the pandora story.

As we highlighted earlier, apple negotiates directly with the music labels on these international rights deals.

That allows them to fire into a bunch of countries really quickly, whereas pandora does not follow a similar path.

That has slowed its international expansion.

However, i think there is a bigger question of where pandora needs to be focusing its energy.

Right now, this company has been going around the country, building up an advertising sales team so that it can generate more advertising revenue and getting itself available anywhere and everywhere in the u.s., whether it is in your car or in your living room.

On the other side of it, maybe apple has an up hill battle here at home, hence the need for the international expansion.

Jon erlichman, our senior west coast correspondent, thank you.

Apple's biggest rival samsung is

This text has been automatically generated. It may not be 100% accurate.


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