On the other hand, competition is nothing new for Pandora. As noted, the company has performed impressively and shows that it can log quarterly growth despite the constant comparisons to the likes of Sirius XM ( SIRI). Although Sirius proves to have a more sustainable model with its dominant auto subscriptions, Pandora has acquired 7% of the radio market share and seems to be outgrowing Sirius. However, once Apple enters the market, all bets are off -- and Kennedy understands this. And whether he acknowledges the threat of Apple now or later means nothing. In the meantime, Pandora will need to figure out how to deal with the rising content costs and royalty payments that continue to eat away at its profits.
It seems that Apple may once again do what it does best -- disrupt an existing market. Just the mere rumor that the company is planning to enter the music streaming business has caused a big stir. Unfortunately for Pandora, the song seems to coming to an abrupt end. However, Google or Facebook could provide a refrain if either steps in and makes a bid for Pandora, as I anticipate will happen. At the time of publication, the author was long AAPL. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.Follow @rsaintvilus