NEW YORK (TheStreet) -- Pandora Media (P) shares are falling 6.56% to $16.49 in early market trading on Tuesday after Apple (AAPL) announced that it is releasing Apple Music, a music streaming service, later this month.
The announcement was made at Apple's annual Worldwide Developers Conference in San Francisco yesterday with the service set to launch on June 30.
Pandora's shares closed trading down 3.75% yesterday following the announcement.
Apple's music streaming service enters competition in an already crowded field that consists of Spotify, the newly launched Tidal and Pandora as the current market leaders.
As of the third quarter 2014, Pandora has 76.5 million active users, while Spotify had approximately 60 million active users. As of late last year 51% of internet users listened to music on Pandora while 14% used Spotify, according to industry watcher eMarketer.
Insight from TheStreet's Research Team:
Eric Jackson commented on Pandora in a recent post on RealMoney.com. Here is a snippet of what Jackson had to say about the stock:
One of the early down stocks today, ahead of the Apple Worldwide Developers Conference in San Francisco, is Pandora Media P. As of this writing, the stock is down 1.5%.
This is, of course, due to the expected announcement today that Apple is launching a new and improved music streaming service. Apparently, the company was trying to finalize deals with all the key music labels over the weekend.