In the new write up in the New York Times, 2 things are clear from an insider’s perspective. Apple’s entry into this market segment signals the maturation of Internet radio and like all maturing business models, it is about distribution and revenue rather than about the end consumer. The service may indeed be excellent. But that is second fiddle to the execution and the construct.
Take note of the 3 most salient points:
Apple’s ability to place the app on millions of its devices gives it an enormous potential audience from Day 1.
“It’s a huge opportunity on a global basis to accelerate the transition of radio listeners and advertising dollars from terrestrial to digital,” said Stephen Bryan, the executive vice president for digital strategy at the Warner Music Group,
“It’s hard to say that Pandora hasn’t helped make Internet radio mainstream already,” said Glenn Peoples, the senior editorial analyst at Billboard. “But iTunes Radio can help it grow and can change the impressions of it in the minds of advertisers and sponsors.”
Read the full article here: With iTunes Radio, Apple Takes Aim at Pandora – NYTimes.com.