It tackles the traditional radio sector head on, not only using the exact same (or, at least, very similar) sales model as broadcasters such as Clear Channel, but poaching top people from these companies to execute it. Pandora comes in on the end where users hit a button and enjoy a personalized listening experience.
While Pandora dominates Internet radio, there's plenty of room for others. Spotify and Rdio, for instance, come in on the end where you know what you want to hear and/or you want to build the modern-day version of a traditional record collection and store it in one place across devices for a nominal monthly fee.
Even Apple (AAPL), hardly a company concerned with the fate of the music industry, has a clear, well-defined strategy. If it doesn't succeed in propping up digital download sales with iTunes Radio, it will help jumpstart what is, at the moment, a fledgling mobile advertising business. And, more importantly, iTunes Radio provides just another feature that, like Amazon, helps enhance Apple's hardware-dominated ecosystem.
So many people have an opinion on what Apple should do with its cash. Tim Cook has already listened way too much, particularly to David Einhorn. Hopefully he won't do the same with Carl Icahn. Pretty much every idea I have come across with suggestions for how Apple can spend its money is a bad one.But I have a worthy proposition. Do some charity work for Internet radio. Some activism. Apple should buy Slacker, publicly fire Cady and promptly disassemble the company, maybe just keeping its San Diego office space because its sunny down there and can field a considerable number of iAd salespeople. Slacker makes solid spaces look bad. Unless the company gets bought out, I doubt it will be around in two to five years. It offers nothing you cannot find elsewhere. And there's really no sound model to support an actual business. Follow @rocco_thestreet --Written by Rocco Pendola in New York City
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV