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

Why Pandora, Apple Investors Should Fear Amazon Prime Music: StockTwits

NEW YORK (TheStreet) -- Pandora (P - Get Report) and Apple (AAPL - Get Report) investors aren't scared of Amazon (AMZN - Get Report) Prime Music. But they should be -- at least a little.

Amazon launched a streaming music service Thursday for its Prime subscription customers. Prime customers pay $99 a year in exchange for free two-day shipping on many items in the Amazon store, as well as the ability to stream movies, borrow e-books and, now, listen to a library of songs from major artists.

Prime Music includes over a million songs and does not have ads. But Amazon's service lacks many of the draws of Pandora and iTunes radio, making it unlikely to steal these services' existing customers.

$AAPL Just tried $AMZN new streaming service, and it's not bad. Not as good as Spotify or Beats, but more free music if you're a Prime mem

? Randell G Gortney (@yentrog31) Jun. 12 at 05:41 AM

Amazon Prime Music doesn't fare to well in a head to head comparison with Pandora. Like Amazon, Pandora has a library of more than a million songs, according to Pandora founder Tim Westergen's comments at a September Goldman Sachs conference.

However, Pandora also has a "today's hits" station that plays new releases. Most of the songs on Amazon Prime Music will be six months old, according to a Wall Street Journal report, and Amazon's library does not include songs from Universal Music Group, the largest record label.

@CodiSmith @AKEB $AMZN can't touch $P with a sorry service that offers six month old songs. NO ONE will care about that, much less switch.

? Rotten Al (@RottenAl) May. 30 at 01:15 PM

Pandora also enables music discovery. The company's proprietary algorithm analyzes songs and picks similar tracks, enabling a listener to hear more music that they might enjoy rather than keep listening to the same old songs that listeners might even own already.

Moreover, Pandora is cheaper. An ad-free Pandora subscription is just $4.99 a month, or $60 a year. Prime membership costs $99 a year, although it comes with far more than a music streaming service.

@CodiSmith Hard to beat Pandora free service, we buy about $100 a year in iTunes music, eventually may just pay for a streaming service

? Tim Allen (@bittercheaperfaster) May. 30 at 11:28 AM

Pandora's stock rose 0.8% by noon, after the news. Amazon shares fell 1.75% as investors bet that the service would not steal Pandora's user base.

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 $95.03 0.21%
AMZN $675.00 12.00%
P $10.50 11.00%
FB $116.73 0.00%
GOOG $691.02 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs