This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

I'm Excited for iRadio, but AAPL Investors Should Not Be

NEW YORK ( TheStreet) -- As an unabashed Pandora (P - Get Report) bull, I'm excited to see Apple's (AAPL - Get Report) iRadio appear to be so close to reality.

That said, I consider the development from several perspectives.

First, TheStreet has known this was going to happen for a while. Late last year, an incredibly reliable source told me "it's only a matter of time" before Apple enters Internet radio. In April of this year, media outlets ran around confirming the rumor as if it was news.

So, yeah, not much of a surprise that it's going to happen.

That said, I still don't quite understand why. Scratch that. I understand why. I just don't think it makes sense in the grand scheme of things.

On the bright side, it's -- most likely -- fantastic news for consumers.

If Apple has a weakness, it's software. While iOS and OS X are both best of breed, it's the affiliated software and service platforms that leave a bit to be desired. Some are way more mediocre than they should be (e.g., iTunes). Others, such as Ping, flat out failed despite considerable fanfare from Apple ahead of launch.

But I hold out hope Apple will hit a home run with iRadio (though I hope they fool us and call it something else). Even if it's not great, I don't expect it to go the way of Ping.

iRadio will make the Internet radio space richer, providing consumers with even more choice in an already eclectic space. Ironically, it might help Pandora's bottom line. And, although it could sting Pandora a little, Apple's entry could help shake out some of the chaos in the music royalty war that's currently raging.

It's also a win for the music industry. Forget about royalties -- though Apple will pay more per song than Pandora -- and focus on promotion.

Pandora already drives music sales on iTunes. Reportedly, that will be a phenomenon Apple hopes to extend with iRadio. The music industry needs this as services such as Rdio deemphasize music purchases, even if unintentionally. Assuming Apple immediately becomes the No. 1 or No. 2 Internet radio player, the labels will welcome having the top two services focused on personalization and discovery, on the basis of listener tastes, which leads to more record sales on iTunes.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%
P $13.80 0.51%
TSLA $230.26 -0.58%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs