- Outside of the U.S., Pandora only exists in Australia and New Zealand.
- From what I understand, Pandora only exists Down Under because it secured an attractive royalty deal. While the company pays more than half of revenue for content costs domestically, the number in Australia and NZ is closer to 20% or 25%.
- Unless something changes dramatically, don't expect Pandora to expand overseas unless it can sign royalty arrangements that look more like the one Down Under and less like the present structure in the U.S.
- Apple can afford to pay whatever it takes to expand internationally. The cost amounts to rounding error on the company's balance sheet. Plus it can leverage its brand and existing cachet to cut deals. All Apple cares about is penetration. The more countries iTunes Radio is in, the more real the possibility it can sell mobile devices there.
P) probably could do (if it really wanted to), but, in all likelihood will not and absolutely should not do. At least not right now. Some key points on this: