After settled big label suit for $90 million (it agreed to a $90 million settlement with record companies like Sony, Universal and Warner, for use of their recordings created before 1972), Pandora is now facing its decreasing stock price. The competitions from Apple’s new streaming music service and other competitors clearly had impact on Pandora. Although the chief executive of Pandora said the launch of Apple Music in Jun has little impact on Pandora, Pandora’s expected revenue was lowered by 2 percent. And the Internet giant gave a weak outlook after the lawsuit was settled.
Now that YouTube’s subscription service also includes provide music. Other companies that provide streaming music services provide same services like Pandora did. Pandora is gradually losing its market share, when facing the fact that Apple and YouTube has a lot of paying users. Not to mention that Pandora still has issue music publishers regarding the business that deals with songwriting copyright. However, Pandora said they are now trying to apply broadcasters’ licenses to cover future period.
My questions are:
- After launch of Apple Music and YouTube’s subscription plan, do you believe companies like Pandora, the providers of music streaming service, will loss their market?
- Pandora is spending a lot of money on buying labels and licenses, do you think labels and licenses will help creating revenue?