Shares of Pandora Media plummeted as much as 21% on Friday
after word leaked out that Apple has been in discussions with record labels to
launch a competing streaming radio service, according to a story by Alex Phama
at the LATimes.
Apple's proposed online service, first reported by the Wall
Street Journal, would have the potential to disrupt both Internet and
traditional radio providers.
Cupertino, Calif.-based Apple is seeking a more flexible
type of music license from the record labels than the one Pandora has. It would
allow Apple to select whatever song it wants to play next and tailor selections
based on albums in listeners' iTunes music libraries, according two industry
executives with knowledge of Apple's plans for the service.
Such features would give Apple the ability to customize its
music to individuals, which traditional radio can't do, without having to ask
them what they like or restrict how often a single song can be played, as
Pandora must.
Pandora's stock plunged as much as 21% in trading Friday,
dipping below $10 in the morning before recovering slightly. It closed at
$10.47, down 16.7%.
Apple's stock, meanwhile, marched up $4.17 Friday to close
at $680.44 -- a new all-time high for the company.
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