NEW YORK (TheStreet) -- Watch this, then read that.
That's the crux of the situation as it stands in Internet radio. You can't even call it a two-horse race between Pandora (P) and Apple (AAPL). There's hardly even any friendly fire. In fact, I'm inclined to illustrate the "competition" between the two companies with this beauty:
Lack of scale. Lack of a focused strategy. One thing can lead to the other, no doubt. However, in this case, there's a whole slew of very good Internet radio companies -- Rdio and Spotify in particular -- who lack scale and, as a result, lose focus. Some (see, e.g., Spotify!) never had it in the first place. Lack of focus plays itself out in nonsensical wandering from being a purely on-demand player -- strange integration of seemingly misplaced apps and dabbling in areas such as video. It's difficult to blame players smaller than Pandora and Apple for doing this. You'll have a difficult time selling advertising without some type of meaningful scale. As such, expect consolidation among Internet radio companies. And, worse yet, some very good ones will fall by the wayside. Think of it in a way similar to your favorite traditional radio station being forced out of business or to flip formats because it just didn't fit with the dynamics of the consumer and advertiser marketplaces.
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 Plus 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