Apple Inc. (NASDAQ:AAPL) will work with Pandora Media Inc (NYSE:P) on media streaming for its in-Car entertainment system according to a revelation from the music-streaming service’s Chief Financial Officer. The announcement comes in the midst of a transformation or the Cupertino-based Pandora competitor iTunes Radio.
An interview with Mike Herring, the Pandora CFO, on Fox Business News revealed that the company plans to release a music streaming application for the entertainment system. Pandora’s software was conspicuously missing from the slew of applications that Apple said would be launching with the CarPlay software last year.
Pandora may launch music streaming on Carplay
Herring commented on the “very interesting” relationship that exists between Apple and Pandora. The companies are, according to the executive, “Frenemies.” Pandora relies on Apple hardware for a large chunk of its revenue, but the companies are now set to be competing in the same markets.
Pandora is the king of music streaming inside the United States, and the service’s lack of availability on the Apple CarPlay system was rumored to be purposeful. Apple is attempting to launch its own music streaming service to compete with Pandora right now, and the company will be leveraging its control over all kids of hardware in order to increase the reach of iTunes Radio.
Whether or not Tim Cook and associates are will use that hardware advantage to actually block competing services has been fairly well answered by the years of relative competition in the App Store. The company will, however, always give the advantage to its own services, featuring them on App Store advertisements and making them the default option on all of its hardware.
Apple fails to launch with streaming
CarPlay will be a big target for media streaming like that offered by Pandora. Radio, the medium that Pandora is trying to kill with its internet-based music streaming service, still dominates the car market, and it’s worth billions in advertising each year.
Apple is, however, trying to expand its influence on the music streaming market, and the company is betting CarPay to bring it success in that market. Pandora CEO Brian McAndrews reckons that Panora excels at “providing the best lean-back listening experience ever created.” That experience is now coming to CarPlay
Paul Verna, an analyst with eMarketer recently wrote about apple’s prospects in the industry saying, “I do think Pandora has established leadership in this space and that Apple will have a hard time threatening that position. So it is not a slam dunk for them.”
Apple is still working on its CarPlay functionality and it’s not clear when the first mass-market examples of the software will hit. Hyundai has announced the release of its new Sonata sedan will contain the media streaming entertainment system.
Media streaming has become a much more competitive industry in the last three years, and many tech giants have launched their own services competing for either music or video streaming. In the last twelve months shares in Pandora Media Inc (NYSE:P) have lost more than 45% of their value as a result of poor earnings and worsening outlook.