The year is 2017 and all major tech moguls like Apple, Microsoft and IBM are competing with one another to dominate the digital world. For decades tech giants have acquired various startups and rising companies in attempt to create a digital revolution. And now Apple has the chance to rule the world if they decide to buy Pandora.
What is Pandora?
Pandora, shortened from Pandora Internet Radio, is currently the leading music streaming platform. The company is so successful that it beats other music streaming services such as YouTube, Spotify, SoundCloud, Amazon Prime’s platform and so forth.
Pandora is currently available only in the US, New Zealand and Australia. It plays tons of recording artists for users based on Windows 10, iOS, Windows Phone, Android and Xbox One. Apart from streaming the user’s selected tracks, it also offers music recommendations based on the user’s preferences. Pandora is supported for smartphones, computers and laptops alike.
What makes Pandora suitable for Apple?
You might be surprised, but Pandora is in fact the leading music streaming service right now. As of 2016 it holds 28% of the Internet’s overall music streaming, surpassing YouTube’s impressive 27% and Spotify’s 17%. Compared to Spotify’s 100 million users Pandora has over 250 million registered users as of 2014.
The platform allows listeners to give positive or negative feedback on the service’s recommendations and it controls approximately 78% of all Internet radio. It was founded back in 2000 and over the course of the past few years it rose to success with the noteworthy revenue of $1.38 billion in 2016. Furthermore, creating a registration on Pandora is only optional for those users, who wish to save radio stations on their account.
Why should Apple buy Pandora?
Apple Inc.’s music streaming service – Apple Music – is currently available for users throughout the globe in more than 100 countries. The rapid growth of the platform earned the company over 20 million subscribers over the course of one year after Apple Music’s launch. However, these numbers are far from enough when it comes to shooting Apple Music all the way to the top.
Apple has acquired more than 80 companies ever since they first bought a small software company named Network Innovations back in 1988. Their biggest acquisition, however, still remains Dr. Dre’s Beats Electronics. Apple bought Beats for $3 billion along with the rights to stream music and manufacture headphones. As of 2016 Apple’s revenue is $215 billion, so that $3 billion acquisition was nothing compared to the tech mogul’s earnings.
If Apple buys Pandora, it would probably cost them less than $3 billion, but even if the possible acquisition costs more, the expenses would most definitely be worth it, to say the least. If they buy Pandora, they will achieve much more profits than any other music streaming service could ever offer.
How can Apple rule the world if they buy Pandora?
By being the top leading music streaming service as of this moment Pandora has a promising future in 2017. On the other hand, Apple Music finds it quite challenging to remain on point as it’s surpassed by YouTube, Spotify, iHeart Radio, and Amazon Prime Music. And for obvious reasons Apple can’t buy any of these competitors.
In the same time, the independent Pandora beats all odds when facing challenges set by its competitors. The company expects to increase its market value as time goes by, but right now their stock shares are underachieving despite the outstanding revenue. Pandora’s ever-growing user base and income can prosper faster if it has Apple’s enviable resources.
On the other hand, Apple will take the crown and will rule the digital world by acquiring Pandora and its current user base. Truth be told, the outcome of such an acquisition is quite obvious. Apple Inc. would not only achieve results, which Apple Music can never dream of, but the company will indeed become the number one music streamer all over the globe. Apple’s resources will allow the tech mogul to bring Pandora to new heights, expanding its streaming services on a world-wide level. Such progress would only lead to greater income for Apple.
Furthermore, apart from making competitive iPhone smartphones sales, Apple can’t rule the digital world through selling other hardware products. With Acer, Asus and BenQ leading the market for electronics and especially gaming computers Apple’s best choice is to focus on the music streaming advantages Pandora has to offer.