The online market place is offering its Prime Music service to customers already subscribed to Amazon Prime.
The company has a library of 1 million songs, while Pandora is close with just about 900,000 songs in its library, according to DigitalTrends.com.
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Prime Music also gives subscribers more options for how they listen to music including personalized recommendations, and pre-programed playlists designed around various moods, genres, and events, TomsGuide.com reports.
Shares of Pandora are higher by 1.47% to $26.97 on Thursday morning.
Separately, TheStreet Ratings team rates PANDORA MEDIA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PANDORA MEDIA INC (P) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."