pandora_newlogo Pandora CFO Mike Herring this week made several comments about Apple's iTunes Radio service in an interview with CNET. The executive addressed on a number of topics, including how he sees competing music streaming services as viable threats, the issues surrounding artist pay by streaming services, and the current state of affairs for all streaming services for paying artists.

When asked what makes the company believe a competitor like Apple isn't a threat to Pandora, Herring acknowledged that Apple is indeed a threat but that it is just one of many high-profile services to enter the market.

It's not that it isn't a threat to Pandora. Don't get us wrong, we take them very seriously and do see them as a credible threat. Keep in mind there have been lots of credible threats over the years, from startups to Microsoft to Google, to Apple and Twitter this year. We absolutely see iTunes as a competitive option out there, but we think we are a great service that does this better than anybody else. The most recent entrants have all been large, well-funded companies that have agendas outside a really awesome music experience. They have other reasons, selling cell phones or downloads. We sell downloads, but the priority isn't to sell as many downloads as possible. It's emblematic of the difference.

Herring was also asked about how Pandora pays lower rates to music labels than Apple because of his company's choice to pay according to government guidelines instead of direct deals:

It's not about lowering rates -- that's about creating fair rates across lots of distribution channels. We've put offers on the table where we commit to paying no less than we pay now in absolute dollars, and with increases on an annual basis. That hasn't gone anywhere because of a lack of trust. It has created a situation where meaningful conversations for positive outcomes are going to be hard-fought wins. It's going to take a long time to get there.

The executive also expressed his feelings about how Apple's iTunes Store has been detrimental to the music industry by breaking down the traditional CD business.

One of the arguments against Pandora is that we're trying to pay artists less money. We'd like to see artists get paid more. We also understand the mistrust comes from a pretty tough decade-plus in the music industry. First you had the piracy issues, which are still rampant, mostly internationally but also domestically. And you had the download platforms, specifically iTunes, that disintermediated the entire CD business, which was detrimental. There's difficulty for people who have experienced these negative things to listen to reason.

Pandora CEO Joe Kennedy stated last month that the company was not worried about iTunes Radio, claiming that the company "did not see the picture changing". Apple launched its service last month, with a report last week stating that the service would be coming to the UK, Canada, Australia, New Zealand, and more countries by early 2014.

Apple's expansion could put its availability ahead of Pandora's in some markets, as Pandora currently operates only in the U.S., Australia, and New Zealand. Pandora, which removed its 40-hour free listening limit ahead of the iTunes Radio launch last month, has remained among the top-grossing apps [Direct Link] in the App Store, with its Pandora One premium service being among the top in-app purchases overall.

Top Rated Comments

NewbieCanada Avatar
102 months ago
iTunes didn't kil the CD. iTunes rescued the paid-music industry that was destroyed by the end of people wanting CDs. CDs were dead anyway. All iTunes did was rescue the music companies by giving them a way to survive. Without iTunes there'd be no Pandora.
Score: 19 Votes (Like | Disagree)
applesith Avatar
102 months ago
Detrimental because it killed the CD business? Yes and cars killed the horse and buggy, computers killed the typewriter. Blah blah blah.
Score: 16 Votes (Like | Disagree)
bp1000 Avatar
102 months ago
Detrimental to his business model

Advantageous to me - helps me discover new music and buy straight from within the app - or add to wish list

So for me useful :)
Score: 13 Votes (Like | Disagree)
musika Avatar
102 months ago
iTunes Radio is more enjoyable to use on iOS than Pandora. Period.

Also, the music is more diverse. My music was rejected from Pandora a couple of years back when I tried submitting it. They seem to have a thing against independent musicians. They said my music 'doesn't fit into their collection'. Alright.

Apple doesn't discriminate. With iTunes Radio, you're getting everybody. I think that leaving out indie artists is a pretty bad mistake and sucks for listeners looking for interesting new music.

Not to mention, Pandora's iOS app throws horribly designed UIWebView ads in your face every time you enter the app to change something on the now playing screen. Ads are fine and all, but at least do it in a way that is classy.

Even more so, Apple pays its artist more money. This is kind of big.

All in all, I prefer iTunes and find that it actually provides a better experience.
Score: 9 Votes (Like | Disagree)
sethlution Avatar
102 months ago
I tried Pandora and Spotify before... didn't really care for it. The songs they picked for my station were hit and miss. iTunes radio on the other hand has been pretty consistent in giving me songs I like. Within the last month alone I have already bought a bunch of songs I've never heard of before, which is more than the nothing I have spent on the other services.

A real credible threat indeed.

I thought I was alone in thinking that iTunes was much better. I mean I constantly skip songs on all the other radio services that I tried, but iTune radio always produces a good playlist that I can listen to for hours. That, plus the fact that I can buy the song directly.
Score: 7 Votes (Like | Disagree)
gatearray Avatar
102 months ago
I'm sorry, I don't speak corporate jibberish, a little help here? :)
Score: 7 Votes (Like | Disagree)

Top Stories

REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
a15 chip

iPhone 13 and Redesigned MacBook Pro Chip Production Hit With Gas Contamination

Friday July 30, 2021 5:44 am PDT by
The most important TSMC factory that manufactures Apple's chips destined for next-generation iPhone and Mac models has been hit by a gas contamination, according to Nikkei Asia. The factory, known as "Fab 18," is TSMC's most advanced chipmaking facility. TSMC is Apple's sole chip supplier, making all of the processors used in every Apple device with a custom silicon chip. Industry...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
apple rtp land

Apple Preparing to Occupy 200,000 Square Feet of Temporary Space Ahead of New $1 Billion North Carolina Campus

Thursday July 29, 2021 9:14 am PDT by
Back in April, Apple announced a $430 billion investment over the next five years to create more than 20,000 new jobs as the company continues to expand. One significant piece of that plan is a new engineering and research center in North Carolina where Apple will be investing over $1 billion and hiring at least 3,000 employees. Assemblage of seven properties in Research Triangle Park owned by ...
telegram

Bumper Telegram Update Enables Video Calls With Up to 1,000 Viewers

Saturday July 31, 2021 12:13 am PDT by
Telegram Messenger has received a major update to its video capabilities, including support for video calls with up to 1,000 viewers. Group video calls in Telegram allow up to 30 users to stream video from both their camera and their screen, and now a maximum of 1,000 people can tune into the broadcast. Telegram says it intends to continue increasing this limit "until all humans on Earth...
app store blue banner

Elon Musk: Apple's App Store Fees Are a 'De Facto Global Tax on the Internet'

Friday July 30, 2021 10:04 am PDT by
Tesla CEO Elon Musk took to Twitter today to criticize Apple's App Store fees in a tweet that sides with Epic in the ongoing Epic v. Apple dispute. "Epic is right," wrote Musk, before going on to call Apple's App Store fees a "de facto global tax on the Internet." Musk earlier this week made veiled comments about App Store fees, but today's statement is a much more direct criticism....
FaceID iMac REREREREMIX

Top Stories: Face ID on Future Macs, Elon Musk Criticizes Apple, and More

Saturday July 31, 2021 6:00 am PDT by
This week saw an interesting range of Apple news and rumors, including a blockbuster earnings report, rumors about next year's "iPhone 14" and Face ID coming to Macs, and more. Subscribe to the MacRumors YouTube channel for more videos. Other popular topics included Apple's crackdown on leaks, changes in the latest round of betas for iOS 15, iPadOS 15, and macOS Monterey, and several stories...
duracell battery bitter coating

Apple Says Don't Buy AirTag Replacement Batteries With Bitter Coating

Wednesday July 28, 2021 11:08 am PDT by
Since AirTags were just released earlier this year and are expected to have a year-long battery life, it may be some time yet before AirTag users need a replacement battery, but when the time comes for a refresh, Apple is warning customers not to buy batteries with a bitter coating. AirTags use coin-shaped CR2032 batteries, which happen to be a size that's easy to swallow. Some battery...