This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The One Thing Apple Could Do to Absolutely Devastate Pandora

Stocks in this article: AAPL P

NEW YORK (TheStreet) -- Earlier this year, I argued that with just 0.3% of its cash Apple (AAPL) could put the hurt on Pandora (P). In this article, I review that assertion and introduce another way Apple could not merely hurt, but absolutely devastate Pandora.

While there's no question Pandora blows iTunes Radio away, the superiority of the consumer platform/product doesn't render Apple impotent.

Because, as I explained in February, on a whim Apple could put the hurt on Pandora in one important area:

Apple could, with the greatest of ease, decide to make weekly iTunes Radio-sponsored concert events across the country a hobby. It could put them on in cities throughout the United States (or the world) consistently. It could live stream them. To do 50-100 of these shows annually -- some grand scale with big names, some with indie and unsigned acts at smallish venues -- would cost Apple nothing ...
(Apple could take control of an area that would) ... build/maintain image, keep (its) ecosystem fresh, help hardware sales ... and generate awareness for and use of iTunes Radio that's not going to happen if you merely go head-to-head with Pandora on the merits of the respective services. Because, again, Pandora wins in that regard. Hands down.
However, thanks to a mix of a lack of resources and a lack of will, Pandora has not competed effectively in areas that can a) drive its core business to new heights, b) improve its positioning in the royalty fight and c) open up new and potentially lucrative (relative to its size) lines of revenue.

In the shell of a nut, Apple could steal the live concert space away from Pandora and use it to drive adoption of iTunes Radio. Of course, as this component played itself out, iTunes Radio would continue to get better just like Apple Maps has.

The effects of that level of salvo would only ding Pandora; however, if Tim Cook decides to get real, look the bleep out. If I'm Apple -- and I'm serious about iTunes Radio -- I take Draconian actions by effectively declaring thermonuclear war on Pandora.

And here's how I would do it ... 

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs