We have exited stage one of investor and smart generalist denial. During this misguided era, the mere mention of a Pandora killer sent shares plummeting. Now, no matter what happens -- new Internet radio combatants or a secondary stock offering -- the stock doesn't do much more than ebb and flow.
However, we're now in stage two of Pandora denial.
Thanks to Apple's (AAPL) iTunes Radio presence, the investor as well the smart generalist remains hesitant to fully and unconditionally endorse Pandora.Given the company's superiority (and technological head start) as a personalized radio and music discovery platform, there's no way even fine products from Apple, Rdio and others can touch Pandora. Here's an anecdotal specimen: Yes, that might be anecdote, but I reckon it's an experience a considerable number of Internet radio listeners have been having, in one way, shape or form, independent of one another. Another anecdote: Over the weekend, my daughter was happy to find "The Voice Radio" on iTunes Radio. When that ran its course, she turned to a straightforward iTunes Radio stream, where she proceeded to skip, skip and skip again. That's something she never does with, say, "One Direction Radio" on Pandora. Why? I partially explain it in the video. I'll further illustrate what I'm saying here. Take a look at these screen captures from Rdio, Clear Channel's (CCMO) iHeart Radio and Apple's iTunes Radio.
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