Apple Radio Might Put Pandora in Play

In early September, reports began surfacing that Apple might get into the Internet radio business. That would put it in direct competition with Pandora Media, the dominant online radio service, and might put Pandora on the takeover wish lists of Amazon.com, Google, and Clear Channel Communications. “Because Apple is doing something,” says Richard Tullo, an analyst at Albert Fried, “that makes everybody else want to counter their move.”

Tullo estimates that within a year Apple could win as many as 20 million users for an online service that streams music based on customers’ tastes. Pandora has 150 million users, many of whom use the service on their phones—making it appealing to Google and Amazon. Radio station owner Clear Channel may also be interested as listeners shift to online media.