Saturday, October 24, 2015

Pandora missed 1.3 million users because Apple Music

At the front of applications and services for iOS Apple apparently decided to declare war on all competitors immediately. The highlight of 2015 is necessary to recognize the launch music service Apple Music. This is a logical step for Apple - the biggest seller of music on the Internet, designed to compete with the subscription service Spotify, Pandora and Google Play Music.

As the head of Pandora Brian McAndrews, the launch of Apple Music led to an outflow of 1.3 million users of its service streaming reports THG. A similar situation was observed two years after the launch of iTunes Radio.

In the last quarterly report Pandora says an increasing number of users of the service by 1.6 million to 78.1 million compared to the same quarter last year. Despite this, the third quarter brought Pandora outflow of 1.6% of the customers. And the company's management believes that the blame for the Apple music service.

"It was, no doubt, a unique quarter streaming music business", - said Brian McAndrews, noting that Pandora had expected negative impact of Apple Music advance and warned investors about a possible outflow of users that will be short-lived.

It is noteworthy that McAndrews statement contradicts his words, he said in July when he said there is no significant impact on Apple Music Pandora. And just a few days after Apple executives said that the service signed up 10 million users.

Thereafter, growth slowed markedly Apple Music. Earlier this week, CEO Tim Cook said that to date the service is used by about 15 million people, of whom 6.5 million have issued a paid subscription. Most of the audience competing services, including Pandora, prefers to use a free subscription to advertising.