Crucial Facts You Should Know About Apple vs. Pandora

NEW YORK ( TheStreet) -- Even if you've never heard of Bridgit Mendler, you need to read this article.

Because I'll introduce and reiterate points investors as well as smart generalists (that's a new term I stole from a friend) need to know about Pandora ( P) and Internet radio/the music industry as it relates to the aforementioned's perceived battle with Apple ( AAPL).

As for Mendler, she's 20 years old. Sweet. Attractive. The star of Disney's ( DIS) Good Luck Charlie and just a little creeped out that I asked to take a picture with her backstage at a recent "Pandora Presents" concert in Southern California.

Mendler performed songs from her debut album, did a couple covers and mentioned she has a new record coming out soon.

A "Pandora Presents" concert is about as big a break a performer at Mendler's level is going to get, short of Taylor Swift calling her out as a special guest on the Red Tour like she did Cher Lloyd, Tegan and Sara and others this past August in Los Angeles.

In fact, the Bridgit Mendler story, as I illustrate it, marks the next -- and, quite possibly, most important chapter in Pandora's history. You don't have to know who Mendler is or care about what she does to understand why she's relevant to at least two multi-faceted and intertwined aspects of a Pandora bull case.

Nobody Wins Unless Everybody Wins

Here's how, in the shell of a nut, "Pandora Presents" works:

Pandora's sales staff works with advertisers. Various Pandora teams work with artists. Advertisers tell Pandora the demographics they hope to engage on the basis of age and location, which link inextricably with music preference. Pandora puts a package together that best suits the advertiser. Customized and targeted in a way terrestrial radio could not possibly match and Apple has no desire, inclination or need to match.

Increasingly these deals include a "Pandora Presents" concert event. I've been to two in about two months. One with a local indie band in LA, sponsored by Chevrolet and the above-mentioned one with Mendler (and rapper Jake Miller) backed by General Mills ( GIS).

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